UPTEC X08 036 Examensarbete 30 hp September 2008
Strategic and operative marketing plan for iNovacia AB in the UK, 2008
Martin Westberg
Molecular Biotechnology Programme Uppsala University School of Engineering
UPTEC X 08 036 Date of issue 2008-09 Author Martin Westberg
Title (English) Strategic and operative marketing plan for iNovacia AB in the UK, 2008
Title (Swedish) Strategisk och operativ marknadsföringsplan för iNovacia AB i Storbritannien, 2008
Abstract This thesis produced a marketing plan with information about potential new customer companies, which ones to contact and why, in the UK for the contract research organization iNovacia. The aim was to aid a future launch into the hitherto – for iNovacia – unexploited UK market. The end result was a database tool with company information, in depth for companies in Oxford and Cambridge and in broader outlines for companies outside those regions as well as a sales promotion letter.
Keywords
Marketing plan, market survey, contract research organization, CRO
Supervisors Thomas Olin CEO iNovacia AB
Scientific reviewer Göran Lindström Centrum för entreprenörskap och företagsutveckling i Uppsala
Project name Sponsors
Language Security English Secret until 2013-08-31
Classification ISSN 1401-2138
Supplementary bibliographical information Pages 63
Biology Education Centre Biomedical Center Husargatan 3 Uppsala Box 592 S-75124 Uppsala Tel +46 (0)18 4710000 Fax +46 (0)18 555217
Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Populärvetenskaplig sammanfattning
Populärvetenskaplig sammanfattning
Läkemedelsbranschen har på senare tid Arbetet ledde i slutändan fram till ett verktyg precis som många andra branscher upplevt i form av en databas med information om ökad konkurrens tack vare bland annat företag lämpliga att kontakta tidigt när globalisering. De därav följande kraven på man bestämmer sig för att slå sig in på den kostnadseffektivisering och resultat har engelska marknaden. En ursprunglig lista lett till en markant ökning av outsourcing på 327 företag krymptes till 46 potentiellt av forskning. Detta har i sin tur skapat en intressanta som information samlades marknad för outsourcingbolag som verkar i in om. Av dessa 46 valdes sedan 15 ut för form av forskningslaboratorier på kontrakt djupare analys och 8 av dessa var i sin tur åt andra bolag. iNovacia är ett sådant tidigare okända för iNovacia. Dessa företag kontraktsforskningsbolag specialiserat på ligger alla i områdena kring Oxford och tidig läkemedelsforskning. Cambridge vilket på ett enkelt sätt möjliggör en effektiv säljresa. Då iNovacia inte är fullbelagda året runt finns ett behov av nya kunder. Man har inte Efter att ha sammanställt information om heller tidigare haft några kunder i England, företagen skrevs ett säljbrev att användas vilket gjorde detta arbetes huvudsyfte till i framtida kontakter, med olika ingress att identifiera nya potentiella kundföretag beroende på vilket företag man närmar sig. på den engelska marknaden. England valdes Arbetet avslutades med en resa till en affärs- på grund av marknadens närhet till Sverige och nätverkskonferens utanför Cambridge. samt det stora antalet bioteknik- och läkemedelsföretag där.
Uppsala University Martin Westberg Uppsala University Spring 2008
Strategic and operative marketing plan for iNovacia AB in the UK, 2008
Martin Westberg Master’s thesis
“I know I am getting better at golf because I am hitting fewer spectators.” - Gerald R. Ford
Supervisor: Thomas Olin Scientific reviewer: Göran Lindström Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Table of Contents
Table of Contents
1. Introduction 1 1.1. The outsourcing of life science research 1 1.2. iNovacia AB 2 1.3. Study background 3 1.4. Anticipated work 4 1.5. Study purpose 4 1.6. Study limitations 5
2. Theory 6 2.1. Criteria for segmentation variables 6 2.2. Nested segmentation 6 2.3. Relationship marketing 7
3. Methodology 9 3.1. Generation of a list of companies 9 3.1.1. Early removals 9 3.1.2. Late additions 9 3.2. The screening and segmentation process 9 3.2.1. The first screening: Biology or not? 9 3.2.2. The second screening: Focus area 10 3.2.3. The third screening: Segmentation variables 10 3.2.4. The fourth screening: Press release study 10 3.3. Sales promotion 12 3.4. Sources of company information 12 3.4.1. Pharmaprojects 12 3.4.2. The BioIndustry Association (BIA) 12 3.4.3. UK Biotech Database 13 3.4.4. Eastern Region Biotechnology Initiative (ERBI) 13 3.4.5. Yahoo! Finance 13
4. Results 14 4.1. Generation of a list of companies 14
Uppsala University ii Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Table of Contents 4.2. The screening and segmentation process 14 4.2.1. The first screening: Biology or not? 14 4.2.2. The second screening: Focus area 14 4.2.3. The third screening: Segmentation variables 15 4.2.4. The fourth screening: Press release study 16 4.2.4.1. Amgen Ltd 17 4.2.4.2. Astex Therapeutics Ltd 18 4.2.4.3. Cellzome (UK) Ltd 18 4.3.4.4. Sareum 19 4.2.4.5. Senexis 19 4.2.4.6. Sentinel Oncology Ltd 20 4.2.4.7. Takeda Cambridge Ltd 20 4.2.4.8. UCB 21 4.2.4.9. Vernalis plc 21 4.2.4.10. Chroma Therapeutics Ltd 22 4.2.4.11. MediGene 22 4.2.4.12. Prosidion Ltd 23 4.2.4.13. Summit plc 24 4.2.4.14. TopoTarget UK Ltd 25 4.2.4.15. Vertex Pharmaceuticals (Europe) Ltd 25 4.3. Sales promotion 26 4.3.1. Sales promotion letter 26 4.3.1.1 Amgen Ltd 26 4.3.1.2. Astex Therapeutics Ltd 26 4.3.1.3. Cellzome (UK) Ltd 27 4.3.1.4. Sareum 27 4.3.1.5. Senexis 27 4.3.1.6. Sentinel Oncology Ltd 27 4.3.1.7. Takeda Cambridge Ltd 27 4.3.1.8. UCB 27 4.3.1.9. Vernalis plc 27 4.3.1.10. Chroma Therapeutics Ltd 28 4.3.1.11. MediGene 28 4.3.1.12. Prosidion Ltd 28 4.3.1.13. Summit plc 28 4.3.1.14. TopoTarget UK Ltd 28 4.3.1.15. Vertex Pharmaceuticals (Europe) Ltd 28 4.3.2. Contacting phase 29
Uppsala University iii Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Table of Contents 5. Discussion 30 5.1. Discussion about the theory used 30 5.1.1. Criteria for segmentation variables 30 5.1.2. Nested segmentation 30 5.1.3. Relationship marketing 31 5.2. Discussion about the results 32 5.2.1 Generation of a list of companies 32 5.2.2. The screening and segmentation process 33 5.2.2.1. The first screening: Biology or not? 33 5.2.2.2. The second screening: Focus area 33 5.2.2.3. The third screening: Segmentation variables 34 5.2.2.4. The fourth screening: Press release study 35 5.2.3. Sales promotion 35 5.2.3.1. Sales promotion letter 35 5.2.3.2. Contacting phase 36 5.3. Discussion about sources 36
6. Conclusions 38
7. Acknowledgements 39
8. Figure listing 40 8.1. Figures 40 8.2. Tables 40
9. Glossary 41
10. References 42 10.1. References in numerical order 42 10.2. Literature list in alphabetical order 53
Appendix A 55
Appendix B 59
Appendix C 62
Uppsala University iv Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 1. Introduction
1. Introduction
1.1. The outsourcing of life Quintiles Helen Davies in 2002 valued the science research 1992 market to $1bn.2 This is also what an extensive Kalorama report (although funded Just as with most sectors of business, by the industry) estimates it to for 1992,4 and globalisation and the resulting global it seems to be the most predominant figure competition is forcing the pharmaceutical circulating. The same Kalorama report also and biotechnology industry to become estimates the market size of drug discovery more efficient in research, development and (thus, not clinical trials and such) in 2005 to production.1 This of course can be extended $4.1bn, with a projected annual growth rate to also include efficiency and effectiveness of 15 % leading to a $7.2bn market in 2009.4 of marketing and asset management as well. One result of this is a relatively new Described in a second, alternative way the entity on the market, the contract research market is also showing clear signs of growth. organisation (CRO), which more or less did When measured as a fraction of big pharma not exist prior to 1980. Once very specialized (the largest pharmaceutical companies, see firms offering narrow outsourcing services, for example reference 7 for a comprehensive these companies now play a major role list) R&D spending, another article from the in drug development and clinical trial same survey in The Economist reports that management.2 These firms compete for in 1996 17 % of this expenditure was spent outsourcing contracts from pharmaceutical on outsourcing (up from about 8 % in 1990).5 and biotechnology companies, and The Kalorama report estimates this (for the aim to deliver research results to their US pharmaceutical industry, rather than commissioner. worldwide) to 10 % of R&D spending in 1997, 24 % in 2001, 33 % in 2005 (its year of issue) There’s no doubt in any report that this and projects it to reach 41 % in 2009.4 sector currently is growing2,3,4,5,6, but the figures on market size and growth vary A third way of assessing the market also with the source. Much of available data is shows a positive trend. When surveyed by also published by the industry itself. While Ernst & Young in 2007, 94 % of biotechnology a 1998 survey in The Economist valued the executives in the US, Canada and Europe 1992 CRO market to slightly less than $2bn,3 said they were likely or very likely to increase a speech delivered by the then-employee of their number of employees over the next 24
Uppsala University 1(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 1. Introduction months. The same survey also reported that (most often a protein) that they want to 70 % of respondents currently outsourced or find something that binds to. The services sponsored research, with 77 % likely or very provided by iNovacia span from screening- likely to use outsourcing within the next assay development and high-throughput 24 months.6 It can, in light of this, also be screening (HTS) all the way to hit-to-lead noted that the number of world-wide CRO optimisation. The in-house compound employees grew from around 12,000 in 1992 library of roughly 300,000 individual to 94,000 in 2001.2 substances is often the foundation for HTS, but external libraries of the client’s CROs can roughly be divided into two choice can also be used. Upon finalizing large groups. Either they, apart from their the screening medicinal chemists proceed contracted business, do research for an with optimizing the potential candidates internal pipeline of drugs or they don’t have discovered to improve their affinity towards one. The first category could arguably be said the target. Client companies can choose to to have an agenda of one day becoming full- outsource a whole discovery process from fledged pharmaceutical companies of their start to finish, or one or several defined steps. own, while the second category claim their Finally, the services also include providing advantage of not having any competitive electronic lab notebooks to customers in an agenda of their own towards their clients.4 in-house developed database structure.10
1.2. iNovacia AB Fiscal year
Number of employees iNovacia is a Swedish contract research Revenue (mSEK) . . organisation, specialising in early drug Net result (mSEK) -. -. discovery. With close to 40 employees, more than 1000 square meters of laboratory Figure 1-1. iNovacia figures and facts from 2006 and 2007.11,12 space and a 2006 revenue of 26.9 mSEK it is the largest such organisation in the Nordic While many biotech start-ups work with red region.8 For recent financial details, see numbers in their yearly results for prolonged Figure 1-1. Created in 2006 by a management periods of time, and many never managing buy-out from Biovitrum, the firm’s employees to turn it around to black ones, iNovacia has now own 70 % of the company. The Russian a vision of breaking even in 2008, their third collaborator Asinex (another CRO) owns 20 year of service and second full fiscal year. %, and the remaining 10 % belongs to the old This is backed up by a positive net for both owner Biovitrum.9 November and December 2007, and a hope and projection of several new and continued The main income source is providing drug projects during 2008.12 discovery services to pharmaceutical and biotech firms. This usually starts with the When considering a five year perspective, the client supplying a defined target substance aim and goal of the company is to grow from
Uppsala University 2(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 1. Introduction today’s approximately 35 employees to 50, might be better fit do perform the actual increasing revenues from 45 mSEK 2007 to innovations and discoveries.1,2,14,15,16 about 100 mSEK and establishing a 10 % profit margin on the target revenue. Regarding iNovacia is a knowledge business, delivering the business projects, the company hopes complex services to a complex sector. To to move more towards full product delivery sell advanced services requires in-depth than doing single steps for customers. Full knowledge about them, as does buying the product delivery in this context means same. Because of this a lot of work is put in to that a customer company brings a target of communication with clients prior to, during interest to the table and iNovacia delivers and after delivery of a service, to facilitate leads to that target via the available in- all aspects of the deal and the work. house pathways.12 One could visualize it as a more of a fire-and-forget type of business for The two main strengths of the company are the customer, except in the sense that this the long experience of drug discovery of the type of business always requires continuous staff and the internal compound library of dialogue and communication between the proven high quality. Other strengths include two parties for optimal results. the proximity (not in Asia or India), the employee motivation (since owning their Recently, iNovacia announced an alliance own company gives them a direct economic with New Jersey based Provid, a Roche incentive to deliver) and the ability to work spin-off medicinal chemistry CRO. The with radioactive material (something many co-operation was formed to further help competitors lack). close the gap between lead generation and lead optimisation, with iNovacia bringing 1.3. Study background mainly generation to the table and Provid optimisation. The combined services of the Seeing a growing market, big pharma two companies encompass everything from companies with problems, unused capacity target validation up to clinical studies.13 Not and a service to sell, iNovacia of course is to be neglected, the alliance gives iNovacia interesting in growing and gaining market an extended office in close proximity to the shares. This can be done by increased repeated potential customers on the United States contracting with current customers, the east coast. recruitment of new customers or both.
The business model fits the general Today iNovacia’s possibilities of entering conception of a pharmaceutical industry in the UK market are limited, with mainly distress, with most of the innovation today knowledge of the region coming from coming from smaller, new firms rather than personal contacts rather than actual facts the large players. With innovation being lost about the market and the companies or getting stuck in bureaucracy within the within it. This study will in the future serve larger corporations, the smaller company as background data to support iNovacia
Uppsala University 3(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 1. Introduction decisions regarding the UK. Because of the highly valued, and with every deal signed nature of the complex services delivered by it is in the dire interest of the provider to iNovacia, the more information available nurture the relationship in such a way that about future partners the better. the customer returns. This study, however, will focus on the recruitment of brand Choosing the UK as the target market has new customers, specifically in the UK, to several underlying reasons. It is a large increase the revenues, build and strengthen market with many established parties the company brand and in the future allow resulting in a broad and large customer for more of those returning customers with base. In fact, the number of companies is periodical contracts. numerous enough that filtering has to be done with regards to which companies to The need for new customers is high, mainly approach.12 because of the company not currently working at full capacity all year around. The UK market is also interesting because A young company also needs successful of its age. Being somewhat mature, the contracts and deliveries to strengthen the market most probably has cunning buyers, brand, making future transactions more something iNovacia reckons will be to their likely. advantage. This also means that many companies are reasonably funded, having 1.4. Anticipated work the economic means of buying the services offered.12 The anticipated work includes studying potential companies by segmenting the Another factor of importance is the market in more or less broad outlines and proximity, with the United Kingdom being planning strategic and operative market no more than one hour away, something activities, including selecting the most valued by many clients. The business does promising potential customers, writing involve a lot of communication for optimal drafts for marketing information to clients results to be reached, and the proximity and and attending meetings with customers. lack of time difference does indeed help with The study will attempt to allow for greater this.12 precision in the contact with clients as well as understanding the company’s Finally, the market across the North Sea is competitiveness there and result in a one of the most important markets in Europe, comprehensive database of the companies allowing larger gains both financially and surveyed. in branding for being a successful player there.12 1.5. Study purpose
In this kind of business to business This study aims at filtering the companies environment the returning customer is by first segmenting the market, then
Uppsala University 4(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 1. Introduction studying the companies in broad outlines, and finally choosing one or a few segments to proceed with. The companies in these segments will then be studied further and more in depth, generating qualitative information about each one to be used in future sales promotion when attempting to enter the UK market.
The objective is thus to compile information that will be useful to iNovacia in future marketing and sales events, as well as facilitate and attend such events.
1.6. Study limitations
The most obvious boundary of this study is the inclusion of exclusively UK companies, with research and development within the country. The time aspect is also closely considered, with high priority in finalizing the work on time.
The information gathered about each company is also not considered a complete review of the activities of the company, but rather one of the major points of interest in this specific context.
Uppsala University 5(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 2. Theory
2. Theory
2.1. Criteria for segmentation you would end up with segments containing variables one customer each and you could just as well have approached them individually from the Selection of customers is one of the critical beginning. Indeed, this is sometimes feasible core strategic decisions to be made by any for very large customers, but generally it is firm. The academically preached method not. of doing this is by segmenting the market, targeting one or more specific segments and Third, the variables chosen should have some positioning your company in order to do impact on how a future approach to the that satisfactory.17 customer is to be done. That is, the variable should have some operative relevance. Segmentation variables are variables used for describing customers. When two Segmentation variables should be customers have similar variable values they measurable, significant and have an are considered to be in the same market impact on future marketing decisions. segment. What is defined as similar – how many variables and which of them that should be similar – is up to the marketer of Figure 2-1. Important characteristics of segmentation variables. the market scouting company.17 2.2. Nested segmentation One approach to defining the variables to be used is described by Webster (1991). In 1983 Bonoma and Shapiro introduced The variables should first and foremost be the nested approach to industrial market measurable, or the scheme will indeed not segmenting. This multistep idea of produce very useful data. segmenting a market involves several stages that are to be used in series, with as few or as Second, the variables should be relevant for many as necessary used. Ideally, it would be a significant amount of potential customers. cheaper to do research for fewer steps, but Too narrow variables will generate too it might not yield the same depth of useful small segments, which in turn will not allow information. The idea is that the marketer efficient marketing decisions to be made that should move down the list of criteria, with effect a whole segment. In the extreme case, the time, cost and difficulty increasing
Uppsala University 6(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 2. Theory step-wise towards the inner ones. Also, the . Demographics inner criteria are increasingly transient also . Operating variables . Purchasing approaches increasing the time it takes to keep this . Situational factors . Personal 18, 19 information up to date. characteristics
The two authors proposed the following five general segmentation criteria, arranged hierarchically: 18
Figure 2-2. Nested segmentation visualized. Start from the
First, one should consider the demographics. outside and work your way inwards. This includes what industry the potential customer is in, the company size and 2.3. Relationship marketing perhaps most important for this study’s application the physical customer location, In 1992, marketing guru Philip Kotler at least in the case of a company within the wrote “companies must move from a right industry. short-term transaction-oriented goal to a long-term relationship-building goal” in a The second criteria to study are the Business Week, Executive Brief volume.20 operating variables. In this category items Relationship marketing is the theory that such as company technology and customer describes marketing with a focus on building capabilities are found. value-laden relationships rather than concentrating on short term transactions,21 Third, the authors propose study of initially coined by Theodore Levitt22 and the customers purchasing approaches: Leonard Berry23. Studies in relationship the purchasing function, the power marketing distinguish between discrete structures, their buyer-seller relationships (transactional) and relationship exchanges, and purchasing policies as well as their with the former having a definite beginning purchasing criteria. and end, and a short duration while the latter involving a series of exchanges over a longer Fourth, the situational factors are to be period of time. The theory acknowledges that considered. This category includes the such a relationship takes time and effort to urgency of orders, the size of orders and build and maintain.21 such. Contrary to the traditional marketing theory Fifth and finally, personal characteristics are of the four Ps (the marketing mix: product, taken into account. This include subjective price, place and promotion), relationship treats such as approach, character, and is marketing focuses on interactive marketing hence the most difficult (as well as expensive (combined with marketing mix influences) and time consuming) to quantify and with a continuous managing of the study. established customer base rather than only
Uppsala University 7(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 2. Theory marketing mix and the market share. In Prospect Potential customer that might buy from you industrial marketing, a shift is taking place Purchaser Customer that has bought from you once from marketing to anonymous masses of Client Returning customer, but with a neutral view of you customers to developing and managing Supporter Returning customer who passively supports you relationships with more or less well-known Advocate Customer that actively recommends you to others or at least somehow identified customers.24 Partner A customer that you have partnered with
Customer retention, one of the cornerstones Figure 2-3. Figure depicting the six different stages of relationship of relationship marketing, has been directly development proposed by the relationship marketing theory. linked to company profitability which thus drives the theory. Relationship marketing also acknowledges that different marketing strategies are needed when the aim is to acquire new customers, as compared to the strategies used when attempting to retain customers. Different stages of relationship development have been identified, and while still significant they are mostly for use within the customer market rather than the industrial market. The six different stages are a prospect – someone who is a potential customer, a purchaser – someone who has done business with you once, a client – someone who has done business with you several times but still is neutral to your organization, a supporter – someone who likes your organization (and has done business with it several times) but only supports it passively, an advocate – someone who actively recommends your business and finally a partner – who is someone you have partnered with. A company’s first objective is to move a prospect to a purchaser, and then further on to become a client. A long- term goal is to make customers supporters or advocates, while partners usually are reserved for a select few since it means more of a strategic decision.25
Uppsala University 8(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 3. Materials, Methods
3. Methodology
3.1. Generation of a list of 3.2. The screening and companies segmentation process
To be able to frame the work of studying The screening and segmentation of potential potential customer companies, a list of customers ensued after the generation of the raw company names associated with list was complete. Following is a description the life science business in the UK had of the steps taken in series. See Figure 3-1 for to be generated. It was agreed that the an overview of the process. most logical source of such a list was the membership listings of the BIA, much in . Is the company within the right industry? . R&D on small molecules? Interesting for other reasons? the same way as a good place to start would . Nested segmentation be SwedenBIO’s listings if Sweden was the Variable group Variable group country of interest. Variable group and 3.1.1. Early removals
Since it was determined at an early stage . Press release study of companies in interesting segments that universities were not of interest, the approximately 10 or so names in the list Figurre 3-1. A schematic overview of the general work procedure starting with “University of” were removed. of this study in the processing of company data.
3.1.2. Late additions 3.2.1. The first screening: Biology or not? After the initial work of going through the whole list, a faster and not as in depth The very first segmentation variable used screening of the membership listing of the described the industry of the studied ERBI was performed, cross checked against company, and was more a virtual/theoretical the original BIA list to find companies not variable than an actual recorded one. This present there. This time, only potential variable did however carry such weight that positives that were not in the original list the bulk of the companies actually were were included, hence no comments were rejected thanks to this criterion. The reason made on why companies were rejected. for this is because the criteria of membership
Uppsala University 9(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 3. Materials, Methods of the BIA or ECBI is not that the company Segmentation variables has any R&D, or in fact any primary pharmaceutical or biological applications. Based mostly on discussions in meetings, Thus, the members are in great extent not variables of interest for potential customers only life science companies but also law were determined. After the original draft firms, lobby groups, charities, science parks, of these variables, some were somewhat venture capitalists, headhunting firms redefined in a way that would ease the and consultants interested in selling their collection of data and comparability services to the life science sector. These between companies (such as boolean true/ firms are however not interested in buying false values for some variables, exemplified pharmaceutical discovery outsourcing, specifically by the operating variables of and were hence crossed from the list category 2). See Table 3-1 for a comprehensive immediately. list of the variables used in the segmenting, a description of each one as well as a 3.2.2. The second screening: Focus classification of what category it falls under area in the nested segmentation scheme (see Theory chapter, subsection 2.2.). This data After the initial and very strict first gathering step was, on a time per company screening, the companies still on the list basis, the most time consuming one. were screened slightly more in depth. This was done via somewhat loose criteria, and 3.2.4. The fourth screening: Press also on a case-by-case basis. The primary release study variable taken into account was whether the potential customer had anything to do After the segments of interest had been with small-molecule therapeutics. Since determined, the companies that fell into this is the primary focus of iNovacia, all each fold were studied further. This arguably companies with R&D in small-molecule should not be termed a screening process, areas are interesting. Secondly, companies but rather be described as gathering of working with one specific disease are per information for future use, specifically in definition interesting for the business. the contacting process. The work consisted Thirdly, protein-only, antibody-only, of going through press releases from the manufacturing, packaging as well as virus, specified company from the last two years bacterial and nucleic acid focused companies to determine what activities the firm had are not interesting, since there is nothing or been up to lately. This included deals signed, not very much iNovacia can offer to them. grants received, co-operations announced, Finally, some companies were removed at services bought and such. this stage because they were too large, at the expressed will of iNovacia. Also included in this fourth step, the therapeutic area of each of the companies 3.2.3. The third screening: was determined. In some cases, this was
Uppsala University 10(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 3. Materials, Methods
Table 3-1. A comprehensive list of the variables used in the third step segmentation of the potential customer companies. The classification is according to the nested segmentation scheme proposed in the theory-chapter. All companies were subjected to data mining about the specified variables, but information was not found in all cases. When this happened, the field was left blank, which for example was common in the history of buying-fields. Noteworthy is the fact that companies were only merited a yes in any of the operating variables of category 2 if they had capacity of their own to perform the said step or steps and not if they sourced it, expressed interest in it or the like. Company capacity on their own was a strict guideline.
Company data information variables Company name Self explanatory Homepage Self explanatory Demographic variables (category 1) Industry A very broad (and not standard industrial classification numbers) description of the company’s main research focus, ie cancer treatment, pharmaceuticals or discovery) Geographic localization Self explanatory Revenues Yearly revenue in the latest available financial statement Net profit Yearly net profit (or loss, as in most cases) in the latest available financial statement Year of creation What year the business was founded. In the case of merger companies, in what year the company in its present form was created. Number of employees Self explanatory Ownership Stock exchange listed, or privately owned. If readily available, also holds more information readily about major holders and such. Operating variables (category 2) Biology The in-house classification term for companies with capacities in the earliest stage of drug discovery. Includes target discovery, assay design and/or assay development. HTS The in-house classification term for companies that are able to do high-throughput screening of compound libraries (own, or in-licensed) against their targets Chemistry The in-house classification term for companies that work with refining generated hits by means of medicinal chemistry Preclinical The in-house classification term for companies able to study adsorption, distribution, metabolism, excretion and toxicity (ADME-T) of compounds. Also includes drug metabolism and pharmacokinetics (DMPK) and in vivo pharmacology capacities. Clinical The in-house classification term for companies dealing with clinical studies in humans Purchasing approaches (category 3) What? What has the company previously outsourced? From whom? If so, from whom did the company order this service? Personal characteristics (category 5) Contact person, theirs Do we have a contact there already? Contact person, ours Who at iNovacia knows this person? Potential contact person Is there a potential contact, someone with a similar background or some connection to Sweden, at the company? Other variables Comment A general comment about the company, often including information from press releases if there has been any fund raising recently, or a short description of projects, pipeline, or other relevant information
Uppsala University 11(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 3. Materials, Methods already present in the comment, in others it 3.4. Sources of company was not. In the first case the data was put in information a field of its own and clarified, in the second case it was determined. The following is a list and description of the sources used to gather information about This information was meant to be the potential customer companies, as well complimentary to the original data (from as establish the original list of companies to the third screening, presented in the Results survey. chapter and found in Appendix B). The press releases chosen were thought to be 3.4.1. Pharmaprojects an indication of recent events that might influence future relations with iNovacia. For Owned by the information firm Informa, example, the launch of a new drug is likely to Pharmaprojects is an in-depth and generate more income, which might result in continuously updated database of drug more buying power and hence was included candidates. New significant drug candidates in the citations, whereas the addition of a are identified and their progress monitored new non-executive board member most as they enter development, research and probably will not and thus was left out. clinical programmes around the world. The database is cumulative since no compounds 3.3. Sales promotion are ever removed, regardless of the fate of the drug candidate. The database currently Following the information study and data holds approximately 36 500 compounds. mining about the selected companies, sales However, the main use of the database in this promotion was the next logical step towards project was not in monitoring compound potentially gaining a new customer. The status, but rather in using its company first thing to do was to formulate a sales profiles. Not only is drug candidate data promotion letter that could be sent out to the stored, but all companies with a connection potential customers. It was decided that the to any of the compounds are also stored on letter should have different introductions separate pages. This makes for easy access depending on what company it was sent data to many of the firms relevant to this to, allowing for more personal and targeted study, and much use was indeed made of the advertising. database in this way.26,27
After the letter and the different headings had 3.4.2. The BioIndustry Association been composed, the contacting phase began. (BIA) This came to consist mainly of attending the annual ERBI partnering conference south of The BioIndustry Association (BIA) is a British Cambridge, attending meetings, addresses trade association for life science companies and networking sessions. based in London. It was established in 1989 and represents more than 300 companies to
Uppsala University 12(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 3. Materials, Methods date. While the organisation’s primary goal to access much of the publicly available is to represent the industry to everything financial information about stock exchange from patients and hospitals to politicians listed companies.31 and government, this study used their membership database as the primary source of company names as well as for information about the life science companies.28
3.4.3. UK Biotech Database
This database is maintained by the Swiss firm Venture Valuation, and aims to be an information platform for both investors and companies within the life science sector. While there is a cost associated with the more detailed information about all companies, this study only used the information provided for free. The information found here was used to complement the information in the BIA membership database.29
3.4.4. Eastern Region Biotechnology Initiative (ERBI)
The Eastern Region Biotechnology Initiative (ERBI) is an organisation very similar to the BIA, but instead of aiming to include all of the UK it is geographically centred on the Cambridge region. The network was founded in 1997, and is a non-profit, self-funded member based company. Noteworthy is that the number of members is not very much smaller than that of the BIA.30
3.4.5. Yahoo! Finance
Yahoo! Finance is a financial website run by Yahoo! quoting information from various stock markets as well as financial news from a wealth of sources. This source was used
Uppsala University 13(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results
4. Results
4.1. Generation of a list of Pharmaprojects, The BIA, The UK Biotech companies Database, The ERBI, Yahoo! Finance and discussions with several people at iNovacia. The BIA membership listing, with universities removed constituted the 4.2.1. The first screening: Biology or primary list. It can be found in Appendix A. not? The late additions mentioned in section 3.1.2 were Argenta Discovery, a large CRO with The first screen removed many companies internal research, BioDynamics Research that in no way would be interested in buying Ltd, another CRO with internal research, pharmaceutical discovery services from an Domainex, a third CRO, with virtual outsourcing company. This greatly reduced screening capabilities and an internal the list, bringing it down from the initial 327 pipeline focusing on nucleotide binding companies to about a third, 121 companies. domains, Senexis, a pharmaceuticals firm with small molecule development, discovery Notably, 57 law firms, 41 consultancies, 12 and in-licensing activities and Sentinel venture capitalists and 12 head hunting Oncology Ltd, a firm focusing on small companies were removed. The remaining molecule treatments of solid tumor cancers removed companies had activities including with all research outsourced. These are at (but not limited to) web design, insurance, the bottom of the list in Appendix A. The financial and asset management, networking, final list had, including the late additions, a charity, agriculture, lobby groups, regional total of 327 companies to screen. and/or university commercialisation, private equity, manufacture as well as government 4.2. The screening and authorities. segmentation process 4.2.2. The second screening: Focus After the list was produced, the screening area and segmentation process began. The main source of information for the first The second screening step removed slightly screening was each company’s webpage. In more than half of the companies still on the the latter screens, the webpage information list after the first screening. This A-list was was complemented with information from then subjected to the third and more in-
Uppsala University 14(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results depth screen. Companies removed at this Table 4-1. Companies that did or did not match the segmentation stage were mostly within the wrong business criteria. The chosen market segments include the first and third for iNovacia to be able to offer services, and parts of the table, from the top down. in total this shrunk the list from 121 to 46 companies, removing 75 names. Chosen in Cambridge Company Comment Most of the companies removed were Amgen Ltd Contacted in the US Astex Therapeutics Ltd No longer competitor companies working purely with proteins, (used to be CRO) antibodies, cells and/or viruses (no small Cellzome (UK) Ltd molecule division, that is), as well as Sareum Ltd CRO, but with internal diagnostics firms. The rest had activities pipeline Senexis covering the whole biotechnology Sentinel Oncology Ltd spectrum. Takeda Cambridge Ltd Contacted in Japan and England 4.2.3. The third screening: UCB Contacted in Belgium Segmentation variables Vernalis plc Discarded in Cambridge The data gathered about the 46 companies Company Reason for being discarded still on the list is available in Appendix Acambis plc Only vaccines B. The data presented in the appendix Alizyme Therapeutics Ltd No small molecules was gathered from the homepages of the Biotica Technology Ltd Natural product individual companies, and the sources cited refinement in the introduction of this subsection (4.2). Domainex CRO Revenues and net profits are from the latest Gilead Ltd No research in the UK Chosen in Oxford reported year, most often 2006. Company Comment Chroma Therapeutics Ltd Contacted in the UK When the list presented in Appendix MediGene B was finalized with the information Prosidion Ltd Contacted in the UK about the companies that passed the first Summit plc two screenings, the interesting market TopoTarget UK Ltd Contacted in Denmark segments were determined. This was done and the UK Vertex Pharmaceuticals Contacted in the US via meetings and discussions with several (Europe) Ltd people at iNovacia, including CEO Thomas Discarded in Oxford Olin and Senior VP, Alliances and Business Company Reason for being Development Peter Halkjaer-Knudsen discarded (PHK). The segment of interest came to be Aptuit CRO (though later in the process chain) defined by two factors: a segment with high priority potential customers based on their business activities, and a segment with a geographic localization of either Cambridge
Uppsala University 15(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results or Oxford. The recorded data was thus sorted basis, is presented in Table 4-2. after these criteria, being automatic with Lacking Unknown regards to location and needing discussion with regards to high priority.
Table 4-1 lists the companies that were home Number of companies to either Cambridge or Oxford, sorted by Biology HTS Chemistry Preclinical Clinical whether they were deemed high priority or Figure 4-1. Heat map depicting the different areas of expertise not and with included comments as to why identified by this study. The higher a bar, the more favourable they were or weren’t interesting. that area is to sell services in.
From the initial list of 327 companies, a 4.2.4. The fourth screening: Press mere 15 were still deemed interesting by release study the standards of this study. Out of those 15, 8 were new to iNovacia and not contacted The further study of the 15 companies before. of interest generated various results, determined mostly by how much information To visualize the competences of the 15 that was accessible within a reasonable companies, a heat map was generated from timeframe. Following is a comprehensive the data in Appendix A. It can be viewed in compilation of what was determined from Figure 4-1. The same data, on a per company the press releases as well as the determined
Table 4-2. Heat map data presented on a per company basis. Green indicates that the company lacks that area of expertise, yellow that it could not be determined and red that the company has it.
# Name Biology HTS Chemistry Preclinical Clinical 36 Senexis UNKNOWN UNKNOWN LACKS LACKS LACKS 37 Sentinel Oncology Ltd LACKS LACKS LACKS LACKS LACKS 21 Cellzome (UK) Ltd HAS IT UNKNOWN HAS IT HAS IT LACKS 40 Summit plc HAS IT UNKNOWN HAS IT HAS IT HAS IT 42 TopoTarget UK Ltd HAS IT UNKNOWN HAS IT HAS IT HAS IT 45 Vernalis plc HAS IT UNKNOWN HAS IT HAS IT HAS IT 46 Vertex Pharmaceuticals (Europe) Ltd HAS IT UNKNOWN HAS IT HAS IT HAS IT 22 Chroma Therapeutics Ltd HAS IT LACKS HAS IT HAS IT LACKS 4 Amgen Ltd HAS IT HAS IT HAS IT HAS IT HAS IT 12 Astex Therapeutics Ltd HAS IT HAS IT HAS IT LACKS LACKS 29 MediGene HAS IT HAS IT HAS IT HAS IT HAS IT 32 Prosidion Ltd HAS IT HAS IT HAS IT HAS IT LACKS 35 Sareum HAS IT HAS IT HAS IT HAS IT LACKS 41 Takeda Cambridge Ltd HAS IT HAS IT HAS IT HAS IT HAS IT 44 UCB HAS IT HAS IT HAS IT HAS IT HAS IT
Uppsala University 16(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results therapeutic focus of each firm. This has a lot of press releases, including 12 in information is meant to be complimentary January 2008 alone. Recent recognitions to the original data, found in Appendix include, according to Amgen themselves, B. As stated in the Materials and Methods the Fortune magazine top 10 “Blue Ribbon chapter, the press releases cited and the Companies” (requiring the company to be information provided below is thought to present in numerous “best of” lists such as be an indication of recent events that might “America’s Most Admired Companies”, “100 influence future relations with iNovacia. For Top MBA Employers”, “100 Best Companies example, the launch of a new drug is likely to to Work For” and “Fastest-Growing Tech generate more income, which might result in Companies”), 2006 “Company of the Year” more buying power and hence is included in (in Pharmaceutical Executive), the third the citations, whereas the addition of a new consecutive yearly “Best Biotechnology non-executive board member most probably Pipeline” by R&D Directions and Med Ad will not and thus was left out. News and third place in Science’s “Top Employers” survey in October 2007.32 In the case of very large firms (see for example 4.2.4.1. Amgen Ltd) a study of all Financially, the revenue of the firm increased press releases was not deemed necessary, 3.5 % between the full 2006 and 2007 years since the sheer size of the company revenues ($14.771bn 2007, $14.268bn 2006), and 14.8 is already a clear indication of their buying % between 2005 and 2006 ($14.268bn 2006, power. When no press release source is cited, $12.430bn 2005). The 2006 revenue fell within the information is from one of the databases the firm’s expectation at the end of 2005, described in the Materials and Methods while the 2007 revenue fell almost $1bn short chapter, such as Pharmaprojects. to the expectation at the end of 2006.33,34,35 The company has been generating multi- When the UK subject company was in fact billion dollar net incomes since before the a subsidiary of another, larger company year 2000 (with the exception of a negative the selection of which releases to cite was result in 2002).32 biased towards selecting press releases that concerned the subsidiary rather than the In 2008, Amgen and Takeda (see 4.2.4.7.) parent company. announced an exclusive collaboration in Japan on up to 13 Amgen Clinical 4.2.4.1. Amgen Ltd Candidates. This generated $200m upfront Therapeutic focus: principal areas payment to Amgen, as well as $702m in a of research include haematopoiesis, multi-year global R&D expense sharing and neuroendocrinology, inflammation and success-based milestones topped off with autoimmunity, obesity, type II diabetes and double-digit royalties on Japan sales. Also tissue growth factors. included in the deal is Takeda becoming the exclusive worldwide partner for motesanib This very large biotechnology company diphosphate (an angiogenesis inhibiting
Uppsala University 17(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results drug), generating an additional $100m portfolio of granted and pending patents upfront to Amgen, $175m in success-based for an undisclosed upfront fee.40 This is the milestones and double-digit royalties on second out licensing of this portfolio, with Japan sales. Takeda also assumes 60 % of Pfizer paying for a similar deal (also with the ongoing clinical development expenses an undisclosed fee) in January 2006.41 The outside Japan. However, this comes at portfolio of patents was as recently as in the cost of Amgen sharing the potential October 2006 strengthened with two more worldwide profit (excluding Japan) 50/50.36 patents,42 and before that strengthened in January 2005.43 The 3D crystal structure of 4.2.4.2. Astex Therapeutics Ltd two different cytochrome P450 constituents Therapeutic focus: small molecule oncology have been published by Astex in Science and drugs, against various types of cancer. Nature.44,45
While previously a competitor CRO, Astex is In fall 2006, clinical trials phase I was no longer offering those services in favor of started for a kinase inhibiting anti-cancer their own R&D operations.37 treatment. This is the second clinical trial started by Astex so far.46 The IND status of Most recently, in February 2008, Astex this drug was granted by the FDA just five received approval of its Investigational New months before the start of the trials.47 Drug (IND) application to the US Food and Drug Administration (FDA) for a small 4.2.4.3. Cellzome (UK) Ltd molecule inhibitor of Heat Shock Protein 90 Therapeutic focus: kinase targeted drugs to (Hsp90) to treat cancer. In the same press treat inflammatory disease. release, it is also stated that Novartis and Astex have extended their collaboration The only published press release from on the discovery and development of novel Cellzome so far in 2008 details the cell cycle control drugs to treat cancer. This appointment of a new vice president, Jane collaboration dates back to December 2005, Dancer, with business development as her when Astex received an upfront payment of primary responsibility.48 $25m for the worldwide license of one cell cycle inhibitor then in clinical phase I. The In December 2007, Cellzome established a deal could be worth up to $520m (excluding scientific advisory board, chaired by their royalties but including the 2008 extension as CSO David Simmons49 and notably including well as requiring one more future extension the Astex Therapeutics (see 4.2.4.2.) founder to pay in full) in fees, equity payments, and CEO Dr Harren Jhoti, representatives option payments and milestones.38,39 from Harvard Medical School, University of Dundee, University of Birmingham, In April 2007, Astex granted University of California and the Whitehead GlaxoSmithKline a non-exclusive license to Institute.50 In November 2007, the Cellzome its cytochrome P450 intellectual property CEO was appointed to the board of the BIA.51
Uppsala University 18(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results In March the same year the first milestone a sixth compound in the internal pipeline payment for a selection of a lead compound (hence the presence of only five compounds towards Alzheimer’s was received from in the original study available in Appendix Ortho-McNeil Pharmaceuticals, Inc,52 part B).65 of a co-operation that started in March 200553 and was prolonged for another year The last 2007 release announces the in Janary 2007.54 extension of a Genentech (originally announced in November 2006) for another In October, 2006, the extension of a six months. Within this agreement Novartis collaboration to the end of June Sareum provides high throughput protein 2008 was announced,55 making it the third expression, purification and structure extension56,57 since the start in 2004.58 Also in determination on drug discovery targets 2006, a kinase drug discovery collaboration designated by Genentech. Financial details was announced with Galapagos.59 The deal of the extension was not disclosed, but gives Cellzome access to Galapagos’s kinase the original agreement announced $1.5m libraries, as well as providing biological potential incomes from research fees and screening and chemical expertise in finding success-dependent milestones.66,67 inhibitors to Cellzome’s targets. Earlier in 2007, Sarenum’s collaboration Regarding funding, approximately €30m with H. Lundbeck A/S was prolonged for was raised in 2003,60 and €34m in 2001.61 12 months, initially announced in 2006 In 2005, Cellzome and Graffinity shared a (then Sareum’s second collaboration €2.2m (€1.1m each) grant from the German with Lundbeck). No financial terms were Ministry of Research and Education.62 disclosed.68,69
4.3.4.4. Sareum Regarding fundraising, £1.25m was agreed Therapeutic focus: small molecule oncology in a placing in October 2007.70 In early 2007, drugs, against various types of cancer. £400k was raised from an ordinary share issuing.71 In October 2006, £312k was raised Sareum is a CRO with an internal pipeline of through a placing.72 six oncology drugs. Three of these are in the lead optimization stage and the rest in lead 4.2.4.5. Senexis generation.63 Therapeutic focus: Alzheimer’s and other amyloid diseases. Sareum’s latest press release announces the results of the later half of 2007. They indicate Senexis operates with only some of the a loss of revenue (down from £1.2m during the research performed internally. They use the same period of 2006) to £1.1m, an increase in term “semi-virtual” company themselves, net loss to £674k (£208k loss 2006).64 Another and only run the in vitro assays in-house.73 press release from the same day announces
Uppsala University 19(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results Most recently (February 2008), Senexis funding in October 2005. Sentinel Oncology announced that they were to start then received £74k as a grant from the East collaborating with O2H who will provide of England Development Agency, as start-up synthetic and computational chemistry capital.78 services on a full time equivalent (FTE) basis. This service aims to strengthen the The most recent of the press releases (October discovery program of Senexis.74 2007) announces a secured investment from the Wellcome Trust under its Seeding Drug Also in early 2008, Senexis joined an Discovery Initiative of £1.3m to develop international research consortium together hypoxia activated drugs acting on solid with 9 other institutions, focused on tumor DNA repair mechanisms.79 Alzheimer’s disease, with €3m European Union funding over 3 years.75 In January the In May 2007 Sentinel Oncology (and its same year, Senexis secured £2.9m funding academic and investment partners at from the Wellcome Trust. This augments an the University of Cambridge) received a investment by company shareholder BTG of development grant of £193k from the East of £0.8m in 2007.76 England Development Agency.80 In February the same year, Sentinel raised £450k from In early 2007, Senexis announced a three investors combined (Cambridge collaboration with DanioLabs (now acquired Enterprise Seed Funds, Medeor Ltd and a by Summit plc, see 4.2.4.13.) providing consortium of city fund managers).81 medium/high throughput, high content in vivo assays in zebrafish. No fees were The oldest press release, from May 2006, disclosed.77 announces secured funding of £100k from the Cambridge Enterprise Seed Funds.82 4.2.4.6. Sentinel Oncology Ltd Therapeutic focus: Small molecule drugs 4.2.4.7. Takeda Cambridge Ltd against cancer, primarily solid tumors. Therapeutics focus: UK research focus is CNS-disorders, chronic pain, urology, Sentinel Oncology operates with a virtual endocrinology and metabolic diseases. discovery model, outsourcing the majority of all scientific activities, according to their Takeda is Japan’s largest pharmaceutical ERBI profile. This however is not evident company and one of the world’s largest. It from the company webpage.78 has been rounding up multi-billion dollar net profits since before 2000, though with The webpage only sports four press releases almost 70 % of the sales income coming in total, since August 2005. However, all four from four products. The UK division (which of these announce secured capital. There is owns a Singapore division) was aquired in also, though not an official press release, March 2007, and was previously known as information on the webpage about received Paradigm Therapeutics.
Uppsala University 20(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results The latest big deal struck by Takeda is one development rather than discovery for some in February 2008 with Amgen. See the final time.37 paragraph of the 4.2.4.1. Amgen Ltd section. As recently as February 19, 2008, the FDA In January 2008, Takeda filed their most approved a new prescription antihistamine recent new drug application to the FDA. The drug from UCB.85 drug is a type 2 diabetes treatment backed by six phase III studies.83 In November 2007, the European Medicines Agency (EMEA) denied an application for The press releases from Takeda are market authorization of an UCB drug for numerous, but unfortunately none (since treatment of Crohn’s disease. UCB plans to 2007) concerns the UK subsidiary. appeal the verdict, and a decision on the appeal is expected in the first half of 2008.86 4.2.4.8. UCB Therapeutic focus: central nervous system 4.2.4.9. Vernalis plc disorders, allergy and respiratory diseases, Therapeutic focus: CNS and oncology. immune and inflammatory disorders as well as oncology. The Cambridge operations The two latest press releases from Vernalis focus on inflammation. (the only ones in 2008, and both on the same day) are indeed very significant. They are UCB is another large player, based in a direct result of the FDA not approving Belgium, with net results in the positive the expanded use of Vernalis’s migraine hundreds of millions of euros since before treatment Frova®. Frova® is approved and 2000. 60 % of pharmaceutical sales in 2006 marketed for treatment of acute migraine came from two products. Revenues in with a clear diagnosis, but was denied 2006 were €2.5bn, up from €2.3bn in 2005. approval for use in prevention of short- However, this is significantly lower than in term menstrual migraine.87 They describe 2003 and 2004 when it was close to and over the rework of a loan contract with Endo €3bn, respectively. Pharmaceutical Inc and changes to the management of the company. For 2008, according to UCB, the revenue is expected to decline somewhat compared The loan contract with Endo Pharmaceutical to 2007 (numbers for full year 2007 not Inc was originally to be paid back in August published yet as of February 2008) because 2009, and approximately of $56m. With the of a patent expiry (of Zyrtec®) in the US.84 new contract the loan is cancelled, Vernalis pays $7m upfront, foregoes future royalties UCB has been contacted previously but on US sales of Frova® until annual US net had no budget space for services within sales exceed $85m (Frova® sold for $38m iNovacia’s area of expertise in 2007, because during the first nine months of 2007) and of an expressed strategy of focusing on lead Vernalis terminates its co-promotion of
Uppsala University 21(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results Frova® in the US, effective from February first one, in June 2004, raised £10m (Series 19, 2008. European sales and royalties are B).91 The second one, in December 2004, unaffected, approximately worth €22m in raised £5m (from Essex Woodland LLP, 2007.88 a US based venture capitalist firm).92 The most recent one, in April 2006, raised £30m Within the same press release, the general (Series C).93 terms for the large restructuring of the firm are drawn up. Total employees is to be In December 2007, further positive reduced from 210 to 90, with 75 of those 90 (according to Chroma) results from a being R&D staff. The sacking is claimed to phase I study (acute myeloid leukemia, mostly occur in non-R&D operations (but myelodysplastic syndromes and multiple there are no numbers to tell to what extent myeloma) on a cancer drug were that is true). All operations are to take place announced.94 The development of this drug in the UK, with research concentrated to has not been partnered with anyone, at that one site.88 This most likely means that least not yet, but Chroma expresses a will the funds raised (see entry on Vernalis in to partner.95 The same drug has already Appendix B) to start the US operations in (March and June 2007) been FDA approved 2005 are spent and the operation there to be for a phase II study on solid tumors, and this seized. phase has been initiated in patients with acute myeloid leukemia and myelodysplastic The second press release from February 20 syndromes.94,96,97 announces that Simon Sturge steps down from his position as CEO by the end of In March 2005, Chroma Therapeutics started February. The management organisation will collaborating with Discovery Partners instead report to the Executive Chairman, International in finding new potential lead Dr Peter Fellner.89 compounds against several targets. Chroma provides targets, while Discovery performs On a more cheerful note (though from screening of their compound collection. No early September 2007), Vernalis received a fees were disclosed.98 milestone payment from Novartis of $1.5m for the start of phase I clinical trials of a 4.2.4.11. MediGene compound targeting Hsp90 in solid tumors Therapeutic focus: UK subsidiary focuses on and liquid cancers.90 inflammation, auto immune diseases and cancer treatments. 4.2.4.10. Chroma Therapeutics Ltd Therapeutic focus: Cancer and inflammation At the end of August 2006, the German drugs via chromatin biology. biotech MediGene AG announced the signing of an agreement to buy UK biotech The press releases of Chroma Therapeutics Avidex Ltd (later renamed to MediGene announce three separate fundraisers. The Ltd) for approximately €50m in MediGene
Uppsala University 22(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results AG shares. The two main important of a cancer-killing virus was started in development programs of Avidex at the September 2007 (results have not been time were RhuDex®, an antiarthritis agent published yet) and RhuDex® is in phase II as considered to be of potential blockbuster of January 2007.106,107,108 status, and the Avidex monoclonal T cell receptor technology, able to produce human, In April 2007 the UK subsidiary announced soluble T cell receptors of high affinity. The a collaborative type 1 diabetes research deal was closed successfully only a month program with the Juvenile Diabetes Research later, in late September.99,100 Foundation, set to run over two years. No sums were disclosed.109 This collaboration However, recent (January 2008) decisions was set to use the T cell technology which to focus early research and preclinical MediGene wants externally funded. programs at MediGene AG have resulted in the search for outside investment in the Regarding financing, in September 2007 a monoclonal T cell receptor technology. €15.6m investment by Santo Holding was One possible outcome brought forward is secured.110 In February 2007 €12.6m was the spin-out of the program into a separate raised through an offering111 and in June 2006 entity, with MediGene Ltd being the largest €0.4m was secured, the investment having individual shareholder.101 the same aim as a €1.4m grant in March 2006.112 Also in 2006, MediGene AG raised In February 2008, the German parent €15.6m through a private placement.113 company secured a research grant of approximately €600k over three years from 4.2.4.12. Prosidion Ltd the German Federal Ministry of Education Therapeutic focus: UK subsidiary focuses on and Research.102 type 2 diabetes and obesity.
At the end of 2007 Dr Frank Mathias was OSI Pharmaceuticals conducts its research appointed to the MediGene AG executive on type 2 diabetes and obesity through its board in charge of the new marketing UK subsidiary Prosidion Ltd. The parent division and of business development. He company’s R&D strengths include high- will start on April 1, 2008 and was previously throughput screening, chemical libraries, a general manager at Amgen.103 Also at the medicinal and combinational chemistry end of 2007 (mid-December), the parent and automated drug profiling technology company launched its second drug (against platforms.114 genital warts), initially on the US market.104 Its first drug was launched (in Italy) in OSI Pharmaceuticals releases quite a few December 2006.105 press releases, but a vast majority of them announce what conferences they will In trials, a breast cancer treatment entered be presenting on, rather than financial phase II in April 2007, a phase I/II study statements or research development. The
Uppsala University 23(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results ones concerned with R&D almost all cover development of drugs targeting type 2 different aspects of Tarceva®, an anticancer diabetes. This generated an upfront payment drug which is the company’s only drug on as well as potential future milestones and the market.114 royalties, but no financial numbers were provided.119 The latest press release from the parent company is a statement on the just revealed 4.2.4.13. Summit plc 2007 financial figures. This announces that Therapeutic focus: neurological disorders, the company made a net profit of $66.3m, infectious diseases, cancer and ophthalmic compared with a net loss of $582.2m the diseases. previous year.115 In recent financing news the firm priced a private placement of Previously known as VASTox, a name $175m aggregate principal amount of 3% change in 2007 made the company known convertible senior subordinated notes due as Summit. The company develops drugs in 2038. However, none of the net proceedings an internal pipeline, but is also focused on its would be used in R&D.116 carbohydrate chemistry and zebrafish drug screening which it provides as outsourcing In July 2007, OSI announced that its services to other companies.120 subsidiary Eyetech (aquired in 2005) had agreed to divest its anti-platelet The most recent press release from Summit derived growth factor aptamer program, announces the signing of service contracts transferring it to Ophthotech in exchange with four undisclosed biotech firms worth a for an upfront payment, an equity interest in total of £0.5m (and potentially more over the Ophthotech and potential future milestones next six months) by its subsidiary Dextra and royalties. No financial terms were Laboratories (aquired in 2007, together with disclosed.117 DanioLabs). The same press release also announces a new director of sales at Dextra, In January 2007, Prosidion entered a licensing James Beaumont, who was previously vice agreement with Eli Lilly granting Eli Lilly president of business development at Evotec exclusive rights to its glucokinase activator (an iNovacia competitor).121,122 program. The deal gave OSI an upfront fee of $25m and up to $360m in potential Other deals in 2007 include a $450k development and sales milestones and other zebrafish deal with an undisclosed top five payments plus royalties on sales of any pharmaceutical company in October,123 compounds successfully commercialized an investment of $1m (and a further $10m from the program.118 over three years) in drugs for infectious diseases in July,124 zebrafish deals of €300k In December 2006 Prosidion granted Bristol- combined worth with Merck, Johnson & Myers Squibb a worldwide non-exclusive Johnson and Servier in June,125 a $450k and license to one of its patent portfolios for 5 % royalty on annual sales carbohydrate
Uppsala University 24(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results drug development deal with an undisclosed two other drugs in phase II, the anticancer US pharmaceutical company in May126 and therapy BACECA®138 and the acne treatment two drug discovery collaborations worth a Avugane™.139 On the market, TopoTarget is combined €1m in February.127 represented by one launched drug called Savene™ (Totect™ in the US) used to prevent In 2007 the company received two grants, extravasation following chemotherapy.140 of £220k (from UK Muscular Dystrophy Charity) and £400k (from the Welsh The recent financial news inform of four Development Agency) respectively.128,129 major capital increases during the period Summit also joined a European research 2005-2007. Two events in 2005 yielded consortium developing new treatments €15m in a private funding in March141 for cancer backed by a €2m grant from the and DKK255m in a share offering in June European Commission.130 In February 2006, respectively.142 In November 2006, DKK127m £10.5m was raised through a placing of new was raised in a placing of new shares143 and shares.131 in June 2007 DKK360m was raised from an offering of shares.144 In other financial news, Summit currently has one substance in TopoTarget acquired Apoxis (a Swiss biotech) phase II clinical trials and one in phase I.132,133 in April 2007 as a wholly owned subsidiary In May 2007, the company announced the for €14.5m in TopoTarget shares.145 selection of one small molecule substance to enter preclinical development in the internal The company currently has seven compounds pipeline.134 in preclinical development,146 and recently signed a contract with Lundbeck to acquire 4.2.4.14. TopoTarget UK Ltd development rights of another anticancer Therapeutic focus: Cancer and cancer substance.147 related diseases (such as complications from chemotherapy) 4.2.4.15. Vertex Pharmaceuticals (Europe) Ltd Therapeutic focus: viral diseases, TopoTarget has not published any official inflammation, autoimmune diseases, press releases since October 2006, according cancer, pain and bacterial infection. Current to their homepage. They have however quite main work circulates around hepatitis. a few news items announced on the webpage, which function as press releases.135 The latest available press release (February 2008) from Vertex is good news, a public Many of the announcements inform about offering of common stock yielded $405.8m recent advances of Belinostat, an small before commissions and expenses.148 molecule anticancer drug licensed to CuraGen. There is at least one encouraging In another release from February 2008, phase II reports as well as a third phase II Vertex reports that the net loss nearly study just initiated.136,137 TopoTarget has doubled from 2006 to 2007. In 2006, it was
Uppsala University 25(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results reported to be $206.9m, and in 2007 it grew 4.3.1. Sales promotion letter to a total of $391.3m. This increase in losses was contributed mainly to an increase A generic sales promotion letter was in development investment to support written, which can be found in Appendix C. progression into phase III clinical studies of Information for the letter was taken from telaprevir, a hepatitis C drug.149 personal contact with several people at iNovacia and various information sources In October 2007 the company released about iNovacia activities (such as internal (together with the third quarter results) an memos). update of the current pipeline. While there is a lot of information about telaprevir (further A crucial part of the letter was the heading, showing its importance to the firm) the status or the hook. It was decided that this of three other compounds was reported, initial greeting should be different for one in phase II clinical and the other two each company (or most of the companies), in phase I. There was no information about containing something able to attract the substances in an earlier development stage.150 attention of representatives specifically With regards to earlier stage development, from the company targeted. The information a short business status update in January needed to formulate this greeting was taken 2008 only notes that a number of preclinical from the company profile studies (Appendix activities have commenced and may enter A) and the press release studies (Section clinical development in 2008.151 4.2.4.). The different greetings are presented below. In September, 2007, Vertex repaid the last of its outstanding convertible debts 4.3.1.1 Amgen Ltd ($42.1m)150 and in June the same year Kurt Being a big pharma, with all stages of C. Graves was appointed new Executive development existing in-house, the following Vice President, Chief Commercial Officer slightly more generic greeting phrase was and Head, Strategic Development. His area formulated putting some focus on cost of responsibility is heading the strategic effectiveness which usually is important development and commercial functions as for the large and arguably problematic well as the business development group.152 pharmaceutical companies:
In September 2006 a public offering was “Offering the highest quality drug discovery made which grossed, before commissions services at very competitive pricing, with a and expenses, $300.3m.153 proven record of success.”
4.3. Sales promotion 4.3.1.2. Astex Therapeutics Ltd Having medium throughput x-ray After the data mining steps, the sales crystallography screening, and not very promotion was initiated. much preclinical development, a greeting
Uppsala University 26(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results taking this into concern was chosen: vivo assay expertise respectively. With this in mind, a good header was determined to “Bringing an offer of expertise in medicinal be: chemistry as well as high throughput screening of our large, high quality and “Offering our expertise in medicinal diverse compound library.” chemistry and assay development, as well as high throughput screening of our diverse, 4.3.1.3. Cellzome (UK) Ltd high-quality compound library.” With current ongoing collaborations with companies supplying screening and 4.3.1.6. Sentinel Oncology Ltd chemical expertise, as well as compound With a business model similar to that of libraries, a similar greeting to that of Astex Senexis but with everything outsourced, a (see 4.3.1.2.) was used. similar greeting was formulated:
“Bringing an offer of high throughput “Offering our expertise in medicinal screening of our large, high quality and chemistry and assay development, as well diverse compound library as well as as high throughput screening of our diverse, expertise in medicinal chemistry.” high-quality compound library and rapid compound analysis.” 4.3.1.4. Sareum Sareum’s activities overlap quite a lot with 4.3.1.7. Takeda Cambridge Ltd those of iNovacia, but the potential way in For the same reasons as for Amgen (see is to help out with their internal pipeline. In 4.3.1.1.), the same generic message was used: this context, an offering of HTS screening (of another library than their own) and “Offering the highest quality drug discovery chemistry expertise might be a good way services at very competitive pricing, with a in. proven record of success.”
“Bringing and offer of highest quality drug 4.3.1.8. UCB discovery services via high throughput As in the cases of Takeda and Amgen (4.3.1.6. screening of our high quality, large and and 4.3.1.1. respectively), a generic message diverse compound library as well as was used: medicinal chemistry expertise.” “Offering the highest quality drug discovery 4.3.1.5. Senexis services at very competitive pricing, with a Senexis outsources everything except in proven record of success.” vitro assays which it performs in-house, according to their ERBI profile. They have 4.3.1.9. Vernalis plc recently started collaborating with O2H and Due to the recent events in the company DanioLabs (Summit) for chemistry and in with extensive restructuring and sacking of
Uppsala University 27(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results personnel, the chance of signing a contract makes for a message highlighting cost might be slim. Because of the financial effectiveness, as well as chemistry and situation, a greeting with heavy focus on biophysics expertise: costs was used: “Offering cost effective preclinical research “Offering cost effective, competitively priced services including chemistry and biophysics drug discovery, preclinical research services expertise with a proven record of success.” and chemistry expertise with a proven record of success.” 4.3.1.13. Summit plc With a small molecule recently selected to 4.3.1.10. Chroma Therapeutics Ltd enter preclinical development, a message Having collaborated with other firms of chemistry and biophysics expertise was previously for hit discovery (while providing deemed useful. Also, because of the potential targets themselves), HTS and discovery lack of HTS abilities, this was mentioned: services was chosen as the focal point: “Bringing an offer of the highest quality “Bringing and offer of highest quality drug medicinal chemistry and biophysics discovery services and high throughput characterisation expertise including drug screening of our high quality, large and discovery via high throughput screening diverse compound library.” of our diverse and high quality compound library.” 4.3.1.11. MediGene With most techniques available in-house, 4.3.1.14. TopoTarget UK Ltd a more generic and general message was Since the HTS capabilities were not certain, used: the greeting was formulated with that in mind. Also noteworthy was the large amount “Bringing an offer of the highest quality of substances in preclinical development, drug discovery services at very competitive leading to the following message: pricing, with a proven record of success, including high throughput screening of “Offering high throughput screening our diverse and high quality compound of our diverse, large and high quality library.” compound library as well as expertise in medicinal chemistry and biophysical 4.3.1.12. Prosidion Ltd characterisation.” Prosidion’s parent company OSI Pharmaceuticals expresses its strength in 4.3.1.15. Vertex Pharmaceuticals (Europe) Ltd the fields of high-throughput screening, The lack of information resulted in a generic chemical libraries, medicinal and message, quite similar to previously used combinational chemistry and automated ones, highlighting HTS capabilities: drug profiling technology platforms. This
Uppsala University 28(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 4. Results “Bringing an offer of the highest quality drug discovery services at very competitive pricing, with a proven record of success, including high throughput screening of our diverse and high quality compound library.”
4.3.2. Contacting phase
Although the sales promotion letter composed never was sent out while this thesis work was being done, some other contacting work of potential UK customers was done. The contacting work came mainly to be the attendance of the annual ERBI partnering conference in Hinxton on May 7-9 2008, south of Cambridge, at the Wellcome Trust Genome Campus.
The conference was attended by approximately 600 delegates, and mainly consisted of networking in an open environment, where mingling with other delegates took up most of the time. The scheduled one-on-one meetings with other companies was unfortunately not with any of the ones suggested as potential customers by this study, but instead mainly with companies later in the service chain that iNovacia might be able to share customers with. However, a talk with a high-ranking Takeda officer at the conference yielded a meeting with their Cambridge branch.
Uppsala University 29(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion
5. Discussion
5.1. Discussion about the theory categories. This however is indeed one of used the more useful variables, especially for the rough, early screening, even though it The marketing mix theory of the four Ps arguably is subjective. The second criterion, might well be considered too rigid in this that variables should be relevant for a industrial and business to business context, significant amount of potential customers, making it difficult to apply it to a non- became very prominent when the variables consumer based market. The relationship were weighted and the most potent potential marketing theories, along with the nested customers were selected. The choice of two segmentation described earlier, is probably geographic regions as the main criteria, a better choice of theory. together with the expressed condition that no contact previously should had been Although the relationship marketing taken, is indeed a prime example of broad, theory focuses on exchanges characterised significant and relevant criteria. For the by relationship thoughts, some elements third criterion, time will tell whether this of more impersonal marketing might be was done in a useful way. All in all, the needed in this case, although to the chosen criteria are quite intuitive. companies. As often is the case, the empirical truth might be somewhere in between, 5.1.2. Nested segmentation including a little bit of both. This study primarily made use of the first 5.1.1. Criteria for segmentation two categories described (demographics and variables operating variables), with some influences from the third (purchasing approaches) and This report made use of segmentation the fifth (personal characteristics). variables that were mostly quantifiable, fulfilling the first criterion described by The potential customer screening was done in this theory (see Theory chapter, subsection several steps, with the nested segmentation 2.1.). The one variable that might not be coming into play after the company to be very quantifiable is the included comment classified had been determined to be of that every entry is accompanied with, and general interest. Thus, this could be argued also wasn’t classified as home to any of the to be somewhat of an unorthodox approach
Uppsala University 30(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion in the academic sense, but one that fits the markets as well and still probably a better aim of the study and the company’s interest. match to an industrial market than the This approach was deemed likely to result marketing mix. The theory definitely is a in usable information, as well as being welcome addition to and development of the reachable within the given timeframe. traditional marketing mix and the four Ps in that school of thought. As Grönroos (see Variables that were used that can be reference 24) states in his paper, referring attributed to the first category included to the four Ps: “The simplicity of the model items such as industry, company revenues seduces teachers to toolbox thinking instead and net profit, founding year, number of constantly reminding them of the fact of employees, ownership structure and that marketing is a social process with far perhaps most importantly the geographical more facets than that.” location. The model is also more applicable than Variables used that were more home to the the marketing mix theory to this case of second category were the distinctions of industrial marketing, since the industrial whether the companies had any activity customer not necessarily is as price sensitive of their own in the fields dubbed “biology”, as a private customer might be. “HTS”, “chemistry”, “preclinical” and “clinical”, which were explained in Table 3-1. While relationship marketing in many aspects is concerned with customer Completing these two nested sections were retention, this study had no intention variables that better fit either the third or of facilitating this but rather to help the the fifth category, while not being numerous firm gain new ones. However, it should be enough to consider the section fully covered. mentioned that so far all previous (before Variables that fit the third category include this study was initiated) iNovacia projects the group revealing if there were any readily with a positive outcome has generated more available notions or information about the business from the same client at a later stage. potential customer’s previous outsourcing This is arguably relationship marketing habits. Variables fetched from the fifth (or rather, customer base management) at category include whether there was a person work. working at the potential costumer that we knew, or had any common ground with. It is not possible to within the time frame of this study comment on future retention of 5.1.3. Relationship marketing the potential new customers presented here. The exchanges that may take place after the While arguably more of a consumer market completion of this study might perhaps be theory than an industrial marketing theory, more of a transactional (discrete) nature in the thoughts presented in the theory are their earliest form (since they then have only in many cases well applicable to industrial taken place once), but definitely not without
Uppsala University 31(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion being permeated with an underlying long available year. Recently awarded grants and term thought. This arguably makes them investments are the in-betweens, likely to more of a relationship type exchange, at change on a yearly basis and interesting to least with the potential thereof. update for future potential business.
When sorting the companies surveyed The use-by date as such varies with each in this study into either of the six stages variable, and the list as a whole should not, of relationship building, all previously for maximum gain from its information, be unknown (to iNovacia) can only be fitted left unupdated. If continuously updated, it into the first one: prospects. There have could potentially have a long life, but if left been no performed transactions with any of for too long it should most likely be discarded the companies on the list that iNovacia had in its entirety to prevent decision-making on already been in contact with, hence they also bad facts and inaccurate statistics. There is fit the first category. Within the short term definitely a balance walk between having it perspective, some of the prospects hopefully as a positive tool that facilitates the targeting move to the purchaser category. Within a of potential customers and a negative tool longer perspective, many of them should when it is too static, and it depends on move further and further towards the later time of use and update frequency. The risk categories (such as advocates), since it is is mostly applicable when and if the list is iNovacia’s outspoken determination to keep used as the sole source of information on the customers. market.
5.2. Discussion about the As such, rescreening for newly formed results companies should probably be performed on a yearly basis. Financial information The resulting list of 46 companies is best used should also be updated at this interval. as a dynamic rather than static tool. Being Contact information changes (primarily in real terms a condensation of currently in the case of who has been contacted available and relevant information, it has where) are crucial, and should be updated an implied use-by date. Given different on the fly. Area of expertise should be amounts of time, the variables and data in reviewed perhaps every third year, which the list is in different need of updating. The for efficient performance could coincide company name, industrial area, webpage, with rescreening of companies previously in-house available techniques (biology, deemed uninteresting in the second HTS, chemistry, preclinical, clinical) are screening step (which is further discussed most likely variables that will not change in section 5.2.2.2.). rapidly or very often. Financial information presented on the other hand changes continuously, especially since the reported figures in this report are only from the latest
Uppsala University 32(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion 5.2.1 Generation of a list of still on the list after the first screening were companies removed, and this significantly reduced the amount of work needed when doing the This straight forward step of generating a third (and sequentially fourth) screening. list posed no real problems. One could most probably extend the list of companies by The information needed to discard a going through member lists of more and company was quite often very readily other organizations, go through conference available on the respective webpage, without participant lists or use word-of-mouth too much hassle. In other words, knowing from colleagues in other companies or what to look for is a determining factor in constellations. This was however not done the speed of execution in a screening like for reasons of time and (for the sake of the this. In the case of this study, the factors author) to widen the perspective of the (mentioned in sections 3.2.2. and 4.2.2.) were project. quite loose, possibly allowing false negatives (that is, companies that actually would 5.2.2. The screening and have made good client material) to slip by. segmentation process This was deemed acceptable because of the limited timeframe. As stated in 5.1.2. the method of action was not strictly the nested segmentation One proposed expansion of this study is to described in the literature. 5.2.2.1. and 5.2.2.2. do this step more in-depth, allowing it more discuss the first two steps, and 5.2.2.3. the time and spending more time and resources one with the actual nested segmentation. on each company, to reduce the amount of false negatives. Although there is presently 5.2.2.1. The first screening: Biology or not? (since it has not been studied here) no way This indeed useful, simple and very much of determining how many false negatives necessary screening removed the largest there actually were, given more time with bulk of uninteresting companies, about the same original listing of companies it is a two thirds of the initial list. Its subjective reasonable thing to do. foundation and very simple layout are, in this case, not up for very much discussion. This screening step classifies many companies as uninteresting, and as 5.2.2.2. The second screening: Focus area discussed in 5.2. the information presented, The second screening in fact bore several and decisions made from it, is not likenesses to the first one, in that it was necessarily static. If a company was deemed pretty subjective and quite general. The goal uninteresting here, there is reason for was, just as in the first case, to remove a lot of iNovacia to evaluate this status every now uninteresting companies without spending and then (say, perhaps, every third year or too much time on doing it, which was so) to prevent them from being excluded successfully achieved. 62 % of the companies on the wrong premises forever. A short
Uppsala University 33(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion and time efficient rescreening should not example), they had slipped past the two first take too long, and might generate future screenings, hence being false positives. In business if companies have expanded their other cases (such as that of Domainex), they business, acquired new business or shifted were probably good fits but, in discussions their focus. with primarily business development representatives at iNovacia, deemed 5.2.2.3. The third screening: Segmentation too unlikely to buy services to continue variables pursuing. Quite a lot of work went into drafting the segmentation variables to be used, and the The generation of false positives is of course data mining of the information needed to fill never ideal, but in this case it might not be those variables. However, when push came all too much of a problem. When trying to to shove and we decided on what criteria to reach out to new customers, doing so to base the further in-depth studies of certain one company more than necessary is most companies, it was really one variable that likely better than missing out on one sorting mattered: geographical location. This via criteria too strict and not as allowing. variable more or less stood for almost all Somewhat categorical, a false positive is of the actual segmentation of the market. better than a false negative. However, had The priority rating that was also considered more time been available, one thing to do was not really a data variable, but rather expand the study would be to better detail something that was concluded through and iron out what is desirable in a company discussion of each of the companies. Had that is to pass the third screening and this been more structured earlier (the advance to the fourth. decision to only pursuit those two regions could probably have been made initially), Those companies that made it through to the some work time could have been saved. The final round were good fits and all potential information came handy for the companies customers. Out of the 15 that passed, 8 that were further studied in Cambridge and were previously unknown to iNovacia (53 Oxford of course, but was (in the sense of %), which indeed must be judged as a very this study) redundant for the other locations. positive outcome. However, the information is not worthless and might be useful for future studies or The heat maps generated from the results customer preparations made at iNovacia. of the variables dubbed operating variables With this in mind, it would be too harsh to in section 3.2.3 that conclude section 4.2.3 consider it time wasted. (Table 4-2 and Figure 4-1) showed quite what the staff at iNovacia had expected. The companies from each of the two The area with the most identified demand geographic locations that were discarded is that of high throughput screening, and is were done so on various reasons. In some indeed what the company considers one of cases (as in the case of Acambis, for its primary strengths. However, one should
Uppsala University 34(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion be aware that the majority of the companies area detailed (where applicable) the focus that make up the large HTS bar in Figure of UK operations, rather than worldwide, 4-1 had unknown capabilities within the something that most likely will come in field, and not a confirmed lacking thereof. handy when approaching with a proposal. Although, in the six cases in which the status of internal HTS was unknown, it is Specifically on Takeda, the interest iNovacia indeed more likely that they don’t have it shows in this Japanese company is partly than that they do. This is partly because of because of the sales possibility in England, the impression that most companies express but also for a future reference when wanting their expertise within the field if they posses to penetrate the Japanese market. A it and partly because of its usual absence in successful job for Takeda in the UK might smaller organisations. in the future lead to a job for Takeda in Japan, and a job in Japan for the largest 5.2.2.4. The fourth screening: Press release pharmaceutical company there would study definitely increase the company brand value This study gave more insight to the 15 on that market, generating more sales. primary companies and could quite possibly be used for informative briefings about the Finally, it is interesting and highlighting, companies when contacted by the sales though not within the scope of this study, in people. The insights that it gives and the today’s debate about big pharma problems foundation to build further knowledge is that Takeda and UCB (two indeed large good. When talking to a representative of players) depend so much for sales income on one of the companies, the facts from this only a few products. study can be used to for example choose a good angle to approach from. 5.2.3. Sales promotion
Press releases are indeed a valuable source The sales promotion part is a direct of information, and in the case of all consequence of the customer research companies in this study (and there truly is performed primarily. reason to believe that it is the norm across the board) were very easily obtainable on 5.2.3.1. Sales promotion letter each company website. The formulation of a letter to send to the potential customers was done with The therapeutic area determined for each information from various sources, as cited company was compiled through either in section 4.3.1. The initial greetings that statements on the company website, were proposed by the author were in some statements from any of the sources used cases reworked by iNovacia representatives to gather information about the company, based on their previous communication information gathered from the press releases with some of the companies (in the UK and or any combination of the three. The focus other countries) as well as knowledge they
Uppsala University 35(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion had on their situation, their people or their conference. business. They did however remain mainly based on the initial draft (presented in However, a meeting with Takeda Cambridge section 4.3.1.). was made possible by Peter Halkjaer- Knudsen while at the conference, something After the letter and the introduction drafts considered to be a very successful had been produced, the responsibility of achievement. contacting the companies to receive the letter was split up between Thomas Olin and Peter Most of the networking was done in an Halkjaer-Knudsen, but was determined to open environment, while standing in the be performed at a later stage, after the work halls or having breakfast, which makes it for this thesis had been completed. They very difficult to asses the actual success of split the companies between them based on the conference. Many contacts were made, previous knowledge of and/or contact with and a lot of people were talked to, but the the firm. future will tell whether it was worth the work. As very much expected the conference The construction of the letter was not did not yield any contracts signed, or deals really performed with any specific theory proposed. in mind, but rather with the intention of putting the company strengths in a good 5.3. Discussion about sources light, and pointing out things attracting the recipients. The Pharmaprojects database that was quite extensively used is indeed a goldmine Many of the greetings bore similarities, and of information. With frequently updated the sales arguments most often used include company data, and in-depth pharmaceutical pricing, HTS screening of the high quality compound and trial information, it surely library and medicinal chemistry offers. This aided in the time needed to gather the data matches quite well with iNovacia’s identified for this study. Since it mainly quotes publicly strengths, and the identified needs of the available information, potential bias potential customers. hopefully should not be too severe. This is especially the case since the information on 5.2.3.2. Contacting phase many accounts was validated with Yahoo! The ERBI conference that constituted the Finance and the UK Biotech Database, or contacting phase did not have any one- the other way around. on-one meetings with any of the potential customers identified here. While some More information might well have been of them indeed were in attendance, the gathered by the use of one or several pay chance of meeting and speaking with all of services, but it was not deemed necessary them never presented itself. This was partly within the scope or intentions of this study. due to the fact of a late registration to the
Uppsala University 36(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 5. Discussion The membership listings were indeed good sources for company names, but there are most likely more companies that might be interesting who are not represented on any of the lists scouted. Another source that could have been used for even more names is participant lists from relevant conferences held within the region, something to take note of for future studies.
Uppsala University 37(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 6. Conclusions
6. Conclusions
Segmentation variables used in this study with rescreening of companies deemed overlapped well with the theory, which uninteresting in the second screening step. actually is quite intuitive. Press release studies are an informative way Nested segmentation variables, from the of gathering company information, and it is first, second and third/fifth categories, readily available and easy to access. did as theory described take more work to determine in the later categories than in the Future studies (if using the same list of earlier. The study did not make use of any companies) could focus on eliminating false variables from the fourth category, and only positives from the third screening step, a handful from the third and fifth, which or false negatives from the second step. If was deemed informative enough. the original list itself is to be changed or expanded, a good source of names might be Relationship marketing theory is indeed conference attendance lists. applicable to this case, since it is the expressed will of iNovacia to keep and nurture customer relationships. However, since only potential new customers were studied, it was not plausible to assess this within this study.
The resulting list of companies and relevant information about them has a use-by date, which in general terms is proposed to be the following: Rescreening for newly formed companies should probably be performed on a yearly basis. Financial information should also be updated at this interval. Contact information changes are crucial, and should be updated on the fly. Area of expertise should be reviewed perhaps every third year, which for efficient performance could coincide
Uppsala University 38(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 7. Acknowledgements
7. Acknowledgements
This study would not have been possible without the continuous support from the great people at iNovacia, as well as the golden opportunity to write my thesis there. I would especially like to thank my very inspiring supervisor Thomas Olin for great conversations, a constant stream of interesting things to delve into as well as much appreciated guidance. I would also like to thank Peter Halkjaer-Knudsen for our giving conversations and his strong support with my work, and Hans Richter for input on the theories.
Also, I would like to express my gratitude to Göran Lindström for scientifically reviewing my work, and for our discussions on theory.
IBG, my institution at Uppsala University, deserves credit for not only allowing me to do this work as my thesis but also for the support from especially Margareta Krabbe.
And of course, what would acknowledgements be without me thanking my family and girlfriend? For your help, your time and your belief in me, thank you.
Finally, and most importantly, I would like to dedicate this thesis to my late father who sadly passed away during the course of this study. For you, father.
Uppsala University 39(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 8. Figure listing
8. Figure listing
8.1. Figures
# Caption Page 1-1 iNovacia figures and facts from 2006 and 2007. 2 2-1 Important characteristics of segmentation variables. 6 2-2 Nested segmentation visualized. Start from the outside and work your way inwards. 7 2-3 Figure depicting the six different stages of relationship development proposed by the relationship 8 marketing theory. 3-1 A schematic overview of the general work procedure of this study in the processing of company data. 9 4-1 Heat map depicting the different areas of expertise identified by this study. The higher a bar, the more 16 favourable that area is to sell services in.
8.2. Tables
# Caption Page 3-1 A comprehensive list of the variables used in the third step segmentation of the potential customer 11 companies. The classification is according to the nested segmentation scheme proposed in the theory- chapter. All companies were subjected to data mining about the specified variables, but information was not found in all cases. When this happened, the field was left blank, which for example was common in the history of buying-fields. Noteworthy is the fact that companies were only merited a yes in any of the operating variables of category 2 if they had capacity of their own to perform the said step or steps and not if they sourced it, expressed interest in it or the like. Company capacity on their own was a strict guideline. 4-1 Companies that did or did not match the segmentation criteria. The chosen market segments include 15 the first and third parts of the table, from the top down. 4-2 Heat map data presented on a per company basis. Green indicates that the company lacks that area of 16 expertise, yellow that it could not be determined and red that the company has it.
All figures were drawn by the author of this study.
Uppsala University 40(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 9. Glossary
9. Glossary
ADME-T An acronym for adsorption, distribution, metabolism, excretion and toxicity. Usually refers to the pharmacological study of these parameters of a compound that is to, in the future, be introduced into humans. BIA The BioIndustry Association. London based trade association for the life science sector in the UK. Big pharma Usually refers to the largest pharmaceutical companies. CRO Contract Research Organisation. DMPK An acronym for drug metabolism and pharmacokinetics. Refers to the study of how drugs are degraded and/or modified post ingestion. EMEA The European Medicines Agency. The European counterpart to the American FDA, see FDA for further explanation. ERBI Eastern Region Biotechnology Initiative. Cambridge located membership based company promoting the life science industry in the eastern UK. FDA The US Food and Drug Administration. Regulatory government body for pharmaceuticals and such in the United States. FTE Full Time Equivalent. A way of measuring the degree of involvement by a person in a project. HTS High-throughput screening. The fast and automated screening of a large amount of compounds to generate a lead, something that interacts with a target compound. Hsp90 Heat Shock Protein 90. An essential chaperone. IND Investigational New Drug. The status given by the FDA to a new drug substance, allowing it for example to be shipped across state borders within the US. This is usually approved just before a drug candidate enters clinical phase I. Pharmaprojects Database of drug candidates. PHK Acronym for Peter Halkjaer-Knudsen. Senior VP, Alliances and Business Development at iNovacia. UK Biotech Database Database of biotech companies in the UK.
Uppsala University 41(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References
10. References
10.1. References in numerical order
1. Haour, G. 1992. Stretching the knowledge-base of the enterprise through contract research. R&D Management 22(2): 177-182.
2. Mirowski, P., Van Horn, R. 2005. The Contract Research Organization and the Commercialization of Scientific Research. Social Studies of Science 35(4): 503-548.
3. The Economist. 1998. Trials and tribulations. February 19.
4. Kalorama Information. 2005. Outsourcing in Drug Discovery, 2nd edition.
5. The Economist. 1998. Beyond the behemoths. February 19.
6. Ernst & Young. 2007. Beyond Borders, Global Biotechnology Report 2007.
7. Wikipedia, webpage. List of pharmaceutical companies. http://en.wikipedia.org/wiki/ List_of_pharmaceutical_companies. Accessed 2008-01-30.
8. Biovitrum. 2006. Biovitrum Creates Inovacia, The Nordic Region’s Largest Contract Research Company in Early Drug Discovery. Press release, May 29.
9. Biotech Sweden. 2006. CRO-företag inom tidig forskning: Nya bolaget Inovacia räddar hälften av Biovitrum-jobben. August 15.
10. Inovacia AB, webpage. http://www.inovacia.se. Accessed 2008-02-05.
11. Affärsdata, webpage. Företagsfakta. http://www.ad.se. Accessed 2008-02-05.
12. Thomas Olin, iNovacia CEO. Personal interview 2008-02-19.
13. sp2. 2008. Focusing on chemistry services in drug discovery. February.
Uppsala University 42(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 14. Horrobin, D. 2001. Realism in drug discovery – could Cassandra be right? Nature Biotechnology 19(12):1099-1100.
15. The Economist. 2007. The nimble sumo. August 2.
16. The Economist. 2006. The tortoise and the hare. January 19.
17. Webster, F. 1991. Industrial Marketing Strategy, 3rd edition. John Wiley & Sons.
18. Bonoma, T., Shapiro, B. 1983. Segmenting The Industrial Market. Lexington Books.
19. Kalafatis, S., Cheston, V. 1997. Normative Models and Practical Applications of Segmentation in Business Markets. Industrial Marketing Management 26(6): 519-530.
20. Kotler, P. 1992. It’s Time for Total Marketing. Busines Week ADVANCE Executive Brief: 2.
21. Hunt, S. D., Arnett, D. B., Madhavaram, S. 2006. The explanatory foundations of relationship marketing theory. Journal of Business & Industrial Marketing 21(2): 72-87.
22. Levitt, T. 1983. After the sale is over… Harvard Business Review 61(5): 87-93.
23. Berry, L. L., Shostack, G. L., Upah, G. D. 1983. Emerging Perspectives on Services Marketing. American Marketing Association, Chicago, IL.
24. Grönroos, C. 1997. From marketing mix to relationship marketing – towards a paradigm shift in marketing. Management Decision 35(4): 322-339.
25. Peck, H. 1999. Relationship Marketing: Strategy and Implementation. Butterworth- Heinemann.
26. Pharmaprojects, webpage. http://www.pharmaprojects.com. Accessed 2008-01-24.
27. Informa, webpage. http://www.informa.com. Accessed 2008-01-24.
28. The BioIndustry Association, webpage. http://www.bioindustry.org. Accessed 2008-02- 06.
29. UK Biotech Database, webpage. http://www.ukbiotech.com. Accessed 2008-02-06.
30. Eastern Region Biotechnology Initiative, webpage. http://www.erbi.co.uk. Accessed
Uppsala University 43(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 2008-02-06.
31. Yahoo! Finance, webpage. http://finance.yahoo.com. Accessed 2008-02-06.
32. Amgen, webpage. Amgen Fact Sheet. http://www.amgen.com/pdfs/Fact_Sheet_Amgen. pdf. Accessed 2008-02-22.
33. Amgen. 2006. Amgen’s Fourth Quarter 2005 Adjusted Earnings Per Share Increased 29 Percent to 75 Cents; Full Year 2005 Adjusted Earnings Per Share Increased 33 Percent to $3.20. Press release, January 26.
34. Amgen. 2007. Amgen’s Fourth Quarter 2006 Revenue Increased 17% to $3.8 Billion; Full Year 2006 Revenue Increased 15% to $14.3 Billion. Press release, January 25.
35. Amgen. 2008. Amgen’s Fourth Quarter 2007 Adjusted Earnings Per Share (EPS) Increased 11 Percent to $1.00; Full Year 2007 Adjusted EPS Increased 10 Percent to $4.29. Press release, January 24.
36. Amgen. 2008. Amgen and Takeda Announce Exclusive Collaboration in Japan on up to 13 Amgen Clinical Candidates. Press release, February 4.
37. Peter Halkjaer-Knudsen, iNovacia SVP, Alliances and Business Development. Personal interview 2008-02-21.
38. Astex. 2008. Astex Receives IND Approval for its Small Molecule HSP90 Inhibitor AT13387; Astex Announces Extension of Drug Discovery Alliance. Press release, February 6.
39. Astex. 2005. Astex Announces New Licensing and Drug Discovery Alliance to Develop Novel Cell Cycle Cancer Drugs. Press release, December 6.
40. Astex. 2007. Astex Grants Cytochrome P450 License to GlaxoSmithKline. Press release, April 24.
41. Astex. 2006. Astex Grants Cytochrome P450 license to Pfizer. Press release, January 24.
42. Astex. 2006. Astex patents granted covering the use of key human cytochrome P450 structures. Press release, October 17.
43. Astex. 2005. Astex granted patent covering use of crystal structure of human cytochrome P450 3A4, the most important drug metabolism enzyme in man. Press release, January
Uppsala University 44(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 24.
44. Astex. 2004. Astex reveals structure of key drug metabolizing enzyme – cytochrome P450 3A4 – in Science. Press release, July 16.
45. Astex. 2003. Astex reveals first structure of a Human Cytochrome P450 involved in drug metabolism. July 14.
46. Astex. 2006. Astex Therapeutics initiates clinical trial with investigational anti-cancer drug AT9283. Press release, September 26.
47. Astex. 2006. Astex Therapeutics announces IND approval for novel cancer drug AT9283. Press release, April 25.
48. Cellzome. 2008. Cellzome appoints Dr Jane Dancer as VP Business Development. Press release, January 7.
49. Cellzome. 2006. Cellzome appoints David Simmons as Chief Scientific Officer. Press release, July 5.
50. Cellzome. 2007. Cellzome Establishes Scientific Advisory Board. Press release, December 13.
51. Cellzome. 2007. Cellzome CEO appointed to the Board of the UK’s BioIndustry Association. Press release, November 16.
52. Cellzome. 2007. Cellzome Receives First Milestone Payment for Alzheimer’s Program from Ortho-McNeil Pharmaceutical, Inc. Press release, March 13.
53. Cellzome. 2005. Cellzome Announces Drug Discovery Collaboration in Alzheimer’s Disease with Ortho-McNeil Pharmaceutical. Press release, March 16.
54. Cellzome. 2007. Cellzome Announces Extension of Drug Discovery Collaboration in Alzheimer’s Disease with Ortho-McNeil Pharmaceutical, Inc. Press release, January 31.
55. Cellzome. 2006. Cellzome Announces further Extension of Molecular Pathway Collaboration. Press release, October 25.
56. Cellzome. 2006. Cellzome Announces Extension of Molecular Pathway Collaboration. Press release, July 10.
Uppsala University 45(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 57. Cellzome. 2005. Cellzome Announces Expansion of Pathway Collaboration. Press release, July 26.
58. Cellzome. 2004. Cellzome AG Announces Partnership Agreement with Novartis. Press release, September 20.
59. Cellzome. 2006. Galapagos and Cellzome in kinase drug discovery collaboration. Press release, July 19.
60. Cellzome. 2003. Cellzome Hits Target on Series C Financing. Press release, March 18.
61. Cellzome. 2001. Cellzome Closes € 34 Million ($31 MM) Private Placement in Second Round of Financing. March 1.
62. Cellzome. 2005. Cellzome and Santhera’s business unit, Graffinity, awarded € 2.2 million grant from German Government. Press release, October 12.
63. Sareum, webpage. Pipeline – Cancer Drug Programmes. http://www.sareum.co.uk/ cancer.php. Accessed 2008-03-11.
64. Sareum. 2008. Financial results for the six months ended 31 December 2007. Press release, March 6.
65. Sareum. 2008. Research Update: Oncology Portfolio. Press release, March 6.
66. Sareum. 2007. Extension of Genentech Agreement. Press release, December 12.
67. Sareum. 2006. Multi-Target Genentech Agreement. Press release, November 20.
68. Sareum. 2007. Collaboration Extension with H. Lundbeck A/S. Press release, July 30.
69. Sareum. 2006. Second Collaboration with Lundbeck A/S. Press release, August 15.
70. Sareum. 2007. Fundraising. Press release, October 22.
71. Sareum. 2007. New investment in Sareum. Press release, January 8.
72. Sareum. 2006. Sareum Issue of Equity. Press release, October 30.
73. Senexis, webpage. Platform Technologies. http://www.senexis.com/products/core.htm.
Uppsala University 46(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References Accessed 2008-02-22.
74. Senexis. 2008. Senexis and O2H announce medicinal chemistry collaboration. Press release, February 14.
75. Senexis. 2008. Senexis joins international research consortium. Press release, February 5.
76. Senexis. 2008. Senexis raises £3.7 million from the Wellcome Trust and BTG to further develop its small molecule Alzheimer’s compounds. Press release, January 17.
77. Senexis. 2007. DanioLabs and Senexis Announce Collaboration on Ageing Related Diseases. Press release, January 16.
78. Sentinel Oncology, webpage. News. http://www.sentineloncology.com/news.html. Accessed 2008-02-25.
79. Sentinel Oncology. 2007. Sentinel Oncology Ltd secures £1.3m investment from Wellcome Trust to develop innovative cancer drugs. Press release, October.
80. Sentinel Oncology. 2007. East of England Development Agency (EEDA) to support Sentinel Oncology in the fight against cancer. Press release, May 5.
81. Sentinel Oncology. 2007. Sentinel set to progress novel anti-cancer technology with new investment. Press release, February 8.
82. Sentinel Oncology. 2006. Challenge Fund invests in fight against cancer. Press release, May 5.
83. Takeda. 2008. Takeda Submits New Drug Application for Alogliptin (SYR-322) in the U.S. Press release, January 4.
84. UCB. 2007. UCB on Track. Press release, December 14.
85. UCB. 2008. FDA Approves XYZAL® (levocetirizine dihydrochloride) Oral Solution for the Relief of Seasonal and Year Round Allergies and Chronic Idiopathic Urticaria. Press release, February 19.
86. UCB. 2007. UCB to Appeal European Negative Opinion on CIMZIA® for the Treatment of Patients with Crohn’s Disease. Press release, November 16.
Uppsala University 47(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 87. Vernalis. 2007. Endo Pharmaceuticals and Vernalis Receive Action Letter From FDA on FROVA® Supplemental New Drug Application. Press release, September 30.
88. Vernalis. 2008. Vernalis Settles $56m Endo Loan and Undertakes Major Business Restructuring. Press release, February 20.
89. Vernalis. 2008. Vernalis Announces Management Changes. Press release, February 20.
90. Vernalis. 2007. Vernalis receives milestone payment in Hsp90 inhibitor collaboration. Press release, September 3.
91. Chroma Therapeutics. 2004. Chroma Therapeutics Ltd complets £10m series B financing and appoints Peter Allen and Petri Vainio as non-executive directors. Press release, June 14.
92. Chroma Therapeutics. 2004. Chroma Therapeutics Ltd completes further financing round; raises £5m from major US healthcare investor. Press release, December 7.
93. Chroma Therapeutics. 2006. Chroma Therapeutics completes $53 million series C financing. Press release, April 3.
94. Chroma Therapeutics. 2007. Chroma announces positive phase I efficacy data for novel cancer therapy CHR-2797. Press release, December 13.
95. Chroma Therapeutics, webpage. Partnering Strategy. http://www.chromatherapeutics. com/Partnering-Strategy.htm. Accessed 2008-02-25.
96. Chroma Therapeutics. 2007. Chroma progresses novel cancer therapy CHR-2797 into phase II solid tumor study; presents phase I data at ASCO. Press release, June 13.
97. Chroma Therapeutics. 2007. Chroma progresses novel cancer therapy into phase II clinical development. Press release, March 26.
98. Chroma Therapeutics. 2005. Discovery Partners International, Inc. and Chroma Therapeutics enter into collaboration for lead identification on multiple targets. Press release, March 25.
99. MediGene. 2006. MediGene Signs Agreement to Acquire UK-Based Avidex Ltd. in a EUR 50 Million Share-for-Share Transaction. Press release, August 30.
Uppsala University 48(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 100. MediGene. 2006. MediGene AG Successfully Closes Acquisition of UK-based Avidex Ltd. Press release, September 29.
101. MediGene. 2008. MediGene Focuses its Research Activities and Considers External Financing for mTCR Program. Press release, January 7.
102. MediGene. 2008. Within the Scope of the „BioChancePlus“ Competition, MediGene Receives a Research Grant of Approx. 600,000 Euros from the Federal Ministry of Education and Research. Press release, February 11.
103. MediGene. 2007. MediGene Enlists Dr. Frank Mathias, General Manager of Amgen Germany, as Board Member for Marketing and Business Development. Press release, December 21.
104. MediGene. 2007. MediGene’s Second Drug, VeregenTM (Polyphenon® E Ointment) Launched. Press release, December 14.
105. MediGene. 2006. MediGene’s first Drug* launched in Italy. Press release, December 18.
106. MediGene. 2007. MediGene Initiates Clinical Phase II Trial of EndoTAGTM-1 for the Treatment of Hormone Receptor Negative Breast Cancer. Press release, April 13.
107. MediGene. 2007. MediGene Completes Patient Recruitment for Clinical Trial of Cancer- Killing Virus NV1020. Press release, September 5.
108. MediGene. 2007. MediGene Initiates a Clinical Phase IIa Trial of RhuDex® in Rheumatoid Arthritis. Press release, January 23.
109. MediGene. 2007. JDRF To Collaborate with MediGene to Develop an Antigen-Specific Immunotherapeutic for Type I Diabetes. Press release, April 5.
110. MediGene. 2007. MediGene Raises € 15,6 Million in Private Placement with Santo Holding GmbH. Press release, September 10.
111. MediGene. 2007. MediGene AG Successfully Closes a Capital Increase against Cash Contribution. Press release, February 15.
112. MediGene. 2006. MediGene AG Receives Another Research Grant for the Expansion of the EndoTAG Technology. Press release, June 23.
Uppsala University 49(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 113. MediGene. 2006. MediGene Successfully Closes Capital Increase by EUR 15.6 MM. Press release, March 8.
114. OSI Pharmaceuticals, webpage. Who We Are. http://www.osip.com/whoweare. Accessed 2008-02-25.
115. OSI Pharmaceuticals. 2008. OSI Pharmaceuticals Announces Year End 2007 Financial Results. Press release, February 21.
116. OSI Pharmaceuticals. 2008. OSI Pharmaceuticals, Inc. Prices $175 Million 3% Convertible Senior Subordinated Note Offering. Press release, January 4.
117. OSI Pharmaceuticals. 2007. OSI Pharmaceuticals Announces Agreement to Divest Anti- Platelet Derived Growth Factor (PDGF) Program. Press release, July 27.
118. OSI Pharmaceuticals. 2007. OSI Pharmaceuticals Licenses Its Glucokinase Activator Program for the Treatment of Type 2 Diabetes to Eli Lilly and Company. Press release, January 5.
119. OSI Pharmaceuticals. 2006. OSI Pharmaceuticals Grants License to Bristol-Myers Squibb under Dipeptidyl Peptidase IV (DPIV) Patent Portfolio for the Treatment of Type 2 Diabetes. Press release, December 14.
120. Summit, webpage. http://www.summitplc.com. Accessed 2008-02-25.
121. Summit. 2008. Summit plc announces contract wins by Dextra Carbohydrate service business. Press release, February 21.
122. Summit. 2007. VASTox plc acquires DanioLabs Ltd and Dextra Laboratories Ltd to strengthen its drug discovery pipeline and pharmaceutical services business. Press release, March 22.
123. Summit. 2007. Summit signs $450,000 zebrafish deal with a top five pharmaceutical company. Press release, October 30.
124. Summit. 2007. $10 million collaboration in infectious diseases. Press release, July 24.
125. Summit. 2007. VASTox announces significant progress in pharmaceutical services business. Press release, June 27.
Uppsala University 50(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References 126. Summit. 2007. VASTox signs carbohydrate drug development deal with US pharmaceutical company. Press release, May 16.
127. Summit. 2007. VASTox signs two drug discovery collaboration deals worth a combined €1 million. Press release, February 13.
128. Summit. 2007. Summit receives £220,000 from UK Muscular Dystrophy Charity. Press release, October 2.
129. Summit. 2007. VASTox awarded £400,000 grant to support R&D at carbohydrate chemistry facility. Press release, June 20.
130. Summit. 2007. VASTox joins European research consortium to target the development of new treatments for cancer. Press release, January 17.
131. Summit. 2006. Placing of 5,903,955 New Ordinary Shares to raise £10.45 million and Pre- close update. Press release, February 27.
132. Summit. 2008. Summit Plc’s lead drug candidate enters phase II clinical trials. Press release, January 16.
133. Summit. 2007. Summit Plc begins phase I clinical trial in seborrhoea – a symptom of Parkinson’s disease and the primary cause of acne. Press release, October 23.
134. Summit. 2007. VASTox selects preclinical candidate in Duchenne Muscular Dystrophy programme. Press release, May 8.
135. TopoTarget, webpage. Press releases. http://www.topotarget.com/index.dsp?page=511. Accessed 2008-02-25.
136. TopoTarget. 2007. TopoTarget and CuraGen Report Belinostat Results Presented at ASH and Provide Regulatory Update Following End-of-Phase II Meeting with FDA. Announcement, December 10.
137. TopoTarget. 2007. TopoTarget and CuraGen Announce Initiation of an NCI-sponsored Phase II Clinical Trial of Belinostat for Thymoma and Thymic Carcinoma. Announcement, December 19.
138. TopoTarget. 2007. TopoTarget Announces Encouraging Clinical Results from Phase II Trial of Topical BACECA® in Combination with Retinoid for the Treatment of the Skin
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139. TopoTarget. 2007. TopoTarget announces next Phase II clinical placebo controlled trial with Avugane™ in acne vulgaris. Announcement, April 24.
140. TopoTarget. 2007. Totect™ approved in the United States. Announcement, September 7.
141. TopoTarget. 2005. TopoTarget A/S Raises Euro 15 Million and Attracts New Investor. Press release, March 16.
142. TopoTarget. 2005. Substantial interest in buying shares in TopoTarget A/S. Announcement, June 10.
143. TopoTarget. 2006. TopoTarget completes fully subscribed placing. Announcement, November 28.
144. TopoTarget. 2007. TopoTarget A/S completes offering of new shares. Announcement, June 21.
145. TopoTarget. 2007. TopoTarget completes the capital increase and the acquisition of Apoxis SA. Announcement, June 27.
146. TopoTarget, webpage. D P Front page. http://www.topotarget.com/index.dsp?area=268. Accessed 2008-02-26.
147. TopoTarget. 2007. TopoTarget and Lundbeck sign agreement for siramesine – a new and promising mechanism in cancer therapy. October 4.
148. Vertex Pharmaceuticals. 2008. Vertex Pharmaceuticals Announces Completion of its Concurrent Public Offerings of Common Stock and Convertible Senior Subordinated Notes. Press release, February 19.
149. Vertex Pharmaceuticals. 2008. Vertex Pharmaceuticals Reviews 2008 Business Priorities and Reports 2007 Financial Results. Press release, February 11.
150. Vertex Pharmaceuticals. 2007. Vertex Pharmaceuticals Reports Third Quarter 2007 Financial Results and Provides Development Pipeline Update. Press release, October 29.
151. Vertex Pharmaceuticals. 2008. Vertex Pharmaceuticals Reports Progress in Development of Investigational HCV Drug Telaprevir and Provides Business Update. Press release,
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152. Vertex Pharmaceuticals. 2007. Vertex Pharmaceuticals Announces Two Executive Appointments. Press release, June 29.
153. Vertex Pharmaceuticals. 2006. Vertex Pharmaceuticals Announces Completion of Common Stock Offering. Press release, September 20.
10.2. Literature list in alphabetical order
Berry, L. L., Shostack, G. L., Upah, G. D. 1983. Emerging Perspectives on Services Marketing. American Marketing Association, Chicago, IL.
Biotech Sweden. 2006. CRO-företag inom tidig forskning: Nya bolaget Inovacia räddar hälften av Biovitrum-jobben. August 15.
Bonoma, T., Shapiro, B. 1983. Segmenting The Industrial Market. Lexington Books.
Ernst & Young. 2007. Beyond Borders, Global Biotechnology Report 2007.
Grönroos, C. 1997. From marketing mix to relationship marketing – towards a paradigm shift in marketing. Management Decision 35(4): 322-339.
Haour, G. 1992. Stretching the knowledge-base of the enterprise through contract research. R&D Management 22(2): 177-182.
Horrobin, D. 2001. Realism in drug discovery – could Cassandra be right? Nature Biotechnology 19(12):1099-1100.
Hunt, S. D., Arnett, D. B., Madhavaram, S. 2006. The explanatory foundations of relationship marketing theory. Journal of Business & Industrial Marketing 21(2): 72-87.
Kalafatis, S., Cheston, V. 1997. Normative Models and Practical Applications of Segmentation in Business Markets. Industrial Marketing Management 26(6): 519-530.
Kalorama Information. 2005. Outsourcing in Drug Discovery, 2nd edition.
Kotler, P. 1992. It’s Time for Total Marketing. Busines Week ADVANCE Executive Brief: 2.
Levitt, T. 1983. After the sale is over… Harvard Business Review 61(5): 87-93.
Uppsala University 53(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 10. References Mirowski, P., Van Horn, R. 2005. The Contract Research Organization and the Commercialization of Scientific Research. Social Studies of Science 35(4): 503-548.
Peck, H. 1999. Relationship Marketing: Strategy and Implementation. Butterworth- Heinemann. sp2. 2008. Focusing on chemistry services in drug discovery. February.
The Economist. 1998. Beyond the behemoths. February 19.
The Economist. 1998. Trials and tribulations. February 19.
The Economist. 2006. The tortoise and the hare. January 19.
The Economist. 2007. The nimble sumo. August 2.
Webster, F. 1991. Industrial Marketing Strategy, 3rd edition. John Wiley & Sons.
Uppsala University 54(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix A
Appendix A
This is the complete list of companies retrieved from the BIA membership listings.
3i plc Babraham Bioscience Technologies Ltd Abcellute Ltd Baker & McKenzie Abingworth Management Ltd BBSRC Acambis plc BCG Europe Advanced Centre for Biochemical Engineering Bench International Inc Advent Venture Partners Big DNA Ltd Aggio Partners Ltd Biggart Baillie LLP Alan Boyd Consultants Ltd Bio Products Laboratory Alba Biosciences BioApproaches South West Alizyme Therapeutics Ltd BioBridge Amarin Corporation plc Biocatalysts Ltd Amgen Ltd Biocompatibles plc Ann Gales BioDundee Ann J Simon Biogen Idec UK Ltd Antisoma plc BioInvent Research Consulting Ltd Antoxis Ltd BioMed Research Consulting Ltd Apax Partners Ltd BioNano Centre Apposite Capital BioPark Hertfordshire Ltd Aptuit Ltd BioPharm Services Ltd Aquapharm Bio-Discovery Ltd BioRad Laboratories Europe Ltd Archimedes Pharma Ltd BioReliance Ardana PLC bioscience unit Arecor Ltd BioScience York Ark Therapeutics Group PLC Biotechnology Industry Organisation Arnold & Porter Biotica Technology Ltd Ashurst Bird & Bird Asterand UK Ltd Blake Lapthorn Tarlo Lyons Astex Therapeutics Ltd Bodiam Consulting Ltd Atlas Ventures Borders Technology Management Avecia Biologics Ltd Bridgehead International Avesthagen Technologies Pvt Ltd Bristows Avlar BioVentures Ltd Brown Rudnick
Uppsala University 55(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix A Bryan Cave LLP Enigma Diagnostics Ltd BTG ENKAM Pharmaceuticals A/S Buchanan Communications Ernst & Young Cambridge Antibody Technology E-Scape Recruitment Services Ltd Cambridge Research Biochemicals EuropaBio Cancer Research Techology Ltd. Eversheds LLP Cascade Technologies Ltd Evolution Securities Ltd CEL International Ltd Exmoor Pharma Concepts Ltd Celgene Ltd Fasken Martineau Stringer Saul LLP CellCentric Ltd Ferring Research Ltd CellData Services Financial Dynamics Cellzome (UK) Ltd Fulcrum Pharma Developments Ltd Cels GE Healthcare Ltd Centre of Excellance in Lifesciences Ltd Genecom Ltd Charles Kendall Freight Ltd Genemedix Charles River Laboratories Inc Genentech Chroma Therapeutics Ltd Genesis Faraday Chubb Insurance Company of Europe, SA. Genetrix SL Citigate Dewe Rogerson Genzyme Therapeutics Ltd CMC Biopharmaceuticals Gilead Ltd CMP Therapeutics Ltd Giles Insurance Brokers Ltd CMS Cameron McKenna Gillies O’Bryan -Tear Cobra Biomanufacturing plc GlaxoSmithKline plc Cognia EU Ltd Global Open Coulter Partners Glycoform Ltd Covington & Burling LLP Government of Western Australia - European Office Curidium Medica plc Grant Thornton UK LLP CXR Biosciences Ltd Gregory Fryer Associates Ltd Cyclacel Pharmaceutical Inc Haptogen D Young & Co Health Protection Agency Porton Down De Facto Communications Healthcare Logistics Ltd Deloitte Herbert Smith Denton Wilde Sapte Hewitsons DLA Piper Scotland LLP Hilary Newiss Domantis Ltd Hindle Lowther Dr Brian Kirsop Hogarth Partnership Dundas & Wilson LLP Hugo Schepens Eden Biodesign Ltd Hunter Fleming Ltd Eden Scott Ltd Huntingdon Life Sciences Edinburgh Research and Innovation Ltd Iain Wilcock Egon Zehnder International IDIS Ltd Elkington & Fife LLP immunosolv ltd Emergent Europe Imperial Innovations plc Encap Drug Delivery Intercytex Group plc
Uppsala University 56(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix A Interea International Ltd Morgan Stanley & Co International Ltd Intertek ASG Morrison & Foerster MNP Investec Securities Morvus Technology Ltd Ipsen BioPharma Ltd Murgitroyd & Company IQUR Limited Mylnefield Research Services Ltd Ithaka Life Sciences Napier University ITI Life Sciences National Institute for Biological Standards Control J S Associates Neuropharm Ltd J.A. Kemp & Co New Bridge Street Consultants Jeremy Curnock Cook Nexxus, The West of Scotland Bioscience Network Karus Therapeutics Nomura Code Securities KCL Enterprises Nomura Phase4 Ventures Ltd Kilburn & Strode North West Development Agency - BioNow Kirkland & Ellis International Northbank Communications Korn/ Ferry International Northwest Institute for Bio Health Informatics Kryotrans Limited NovaBiotics Ltd LE Executive Resourcing Novartis Vaccines Lectus Therapeutics Ltd Novozymes Delta Ltd LGC Ltd NPL Management Ltd Linklaters NucanaBiopharmaceuticals London Genetics Ltd Olswang London Technology Network Onyvax Ltd Lonza Biologics plc Orla Protein Technologies Lovells Osborne Clarke Solicitors Maclay Murray and Spens Oxagen Ltd Malaria Foundation International Oxford BioMedica plc Management Forum Ltd Oxford Genome Sciences (UK) Ltd Manches LLP Oxford Therapeutics Consulting Ltd Marks & Clerk (London) PanGenetics BV Mayer, Brown, Rowe & Maw LLP Partnerships UK plc McGrigors LLP Paul Capital Advisors UK Ltd Media Speak Paul Haycock Ltd Medical Research Council Technology Peter Hambleton Medicon Strategic Development Pfizer Global Research and Development MediGene PharmaKodex Ltd Melville Consultants PhytoPharm plc Merck Serono Piper Jaffray Merlin Biosciences Ltd Piramed Pharma MerseyBIO Potter Clarkson LLP Millipore (UK) Ltd Powell Gilbert LLP Mills & Reeve PricewaterhouseCoopers LLP Minster Pharmaceuticals plc Pronostics Ltd Mintz Levin LLP ProPharma Moredun Research Institute ProPharma Partners Ltd
Uppsala University 57(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix A Prosidion Ltd Sudbrook Associates LLP ProStrakan Group plc Summit plc Protherics plc Syntaxin Ltd Proxima Concepts Ltd Takeda Cambridge Ltd Qiagen Ltd Talentmark QuA Vodis Ltd Targeting Innovation Ltd Quest Management Taylor Wessing Quester Capital Management Ltd Taylor Vinters Quintiles Global Data Services The Ann Hayes Consultancy Ltd Rapisardi Intellectual Property Ltd The Government of Victoria - Australia Reed Smith The Institute of Cancer Research Regenetech The Ness Foundation Reneuron Ltd The Wellcome Trust Respivert Ltd Thiakis Ltd Roslin Institute Tods Murray LLP Rouse Legal TopoTarget UK Ltd Rowett Research Services Ltd Tower Mains Ltd Ruston Poole International plc Trigen Ltd Sareum Ltd Tsquared Scottish Association for Marine Life Tukan Partners Ltd Scottish Biomedical UCB Scottish Centre for Genomic Technology & Informatics UCB Celltech Scottish Enterprise Life Sciences UCL BioMedica Plc Scottish Equity Partners Upstate Ltd (Millipore) Scottish Health Innovations Ltd Wallder Consulting Limited Scottish National Blood Transfusion Service Warwick Effect Polymers Ltd SEHTA Welsh Assembly Government SEMTA Vernalis plc Shepherd + Wedderburn Vertex Pharmaceuticals (Europe) Ltd Shire plc Wilmer Cutler Pickering Hale and Dorr LLP Siemens plc Viragen (Scotland) Ltd Silence Therapeutics plc Withers & Rogers LLP Simmons & Simmons Wood Mackenzie SJ Berwin Wragge and Co LLP SkyePharma plc Wright, Johnstone & Mackenzie LLP Slaughter and May Xenova Biomanufacturing Snedden Campbell YM BioSciences Inc. Sosei Co. Ltd. Yorkshire Forward Spencer Stuart Argenta Discovery Stedim S.A. BioDynamics Research Ltd Stem Cell Sciences plc Domainex Stirling Medical Innovations Ltd Senexis Stirling University Innovation Park Sentinel Oncology Ltd Stratagem IPM
Uppsala University 58(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix B
Appendix B
On the two pages following this one the data gathered about the 46 companies that passed the two first screenings is available.
Uppsala University 59(63) Martin Westberg History of buying (purchasing Company data information variables Demographic variables In-house capacity (operating variables): Personal characteristics approaches): Other variables Appendix B Geographic Year of Number of Contact person, Contact person, Potential contact Number Company name Hompage Industry Revenues (m£) Net profit (m£) Ownership Biology HTS Chemistry Preclinical Clinical What? From whom? Comment localization creation employees theirs ours person
1 Acambis plc acambis.com Vaccines Cambridge 30.9 1992 220 Börsnoterat JA JA JA JA JA
2 Alizyme Therapeutics Ltd alizyme.com Discovery Cambridge 1.14 -17.96 1996 17 Börsnoterat JA JA JA NEJ NEJ PHK knows Head of PHK Martin Westberg BD, Neil Fish
3 Amarin Corporation plc amarincorp.com Discovery London 0.5 -26.92 1985 24 Börsnoterat JA NEJ JA JA JA
4 Amgen Ltd amgen.com Pharmaceuticals Cambridge 7276.68 1504.5 1980 20000+ Börsnoterat (storägare: JA JA JA JA JA USA: LA och Boston PHK Big pharma. Fortune 500. Capital Research and Management Company, Barclay)
5 Antisoma plc antisoma.com Clinical studies, refining London 7.96 -9.75 1988 60 Börsnoterat NEJ NEJ JA JA JA
6 Antoxis antoxis.com Antioxidants Aberdeen 2005 2-10 Privat NEJ NEJ JA JA NEJ Only seems to focus on one product, no info about employees, revenues etc. Young firm, probably no income. Situated in Scotland.
7 Aptuit aptuit.com CRO, more or less. Oxford 2004 2000+ JA JA JA JA JA Does most things, and are represented all over the world. Seems to do most work in- house. Competitor. Perhaps interesting to become a subcontractor of them?
8 Aquapharm Bio-Discovery Ltd aquapharm.co.uk Environment, new species. Oban 2000 2-10 Privat JA NEJ NEJ NEJ NEJ A few small molecular interesting substances in the pipeline.
9 Archimedes Pharma Ltd archimedespharma.com Pharmaceuticals Reading 2004 21-50 Privat, VC: Warburg JA NEJ JA JA JA Seems to mostly buy licenses to distribute existing therapies, but has some R&D on Pincus small molecules as their long term investment.
10 Argenta Discovery argentadiscovery.com Pharmaceuticals/CRO Harlow 23.47 8.2 2000 160 Privat JA JA JA NEJ CRO with internal research. Competitor? Hit identification (incl virtual screening), hit-to- lead, lead-opt, assay development and screening. HTS? At least three candidates in preclinical development. Very informative homepage about everything they do. Secured £7.2m in venture capital in 2000. Net profit in 2007, first year that happened. Over £12m in cash 2007, according to Pharmaprojects.
11 Ark Therapeutics Group plc arktherapeutics.com Pharmaceuticals London 0.34 -17.51 1997 86 Börsnoterat NEJ NEJ JA JA NEJ Almost exclusively dealsa with proteins and gene therapies, but has one small molecule substance in phase III, and potentially more.
12 Astex Therapeutics Ltd astex-therapeutics.com Discovery Cambridge 1999 100 Privat (storägare: JA JA JA NEJ NEJ Small molecule, protein binding, medium throughput screening via x-ray-crystallography. Abingworth Discovery.
Management, Oxford Bioscience Partners)
13 BioApproaches South West bioapproaches.co.uk Business development Bristol 2-10 Privat NEJ NEJ NEJ NEJ NEJ Not as a customer, but perhaps as a networking tool. 60(63) within a geographic area 14 BioDundee biodundee.co.uk Business development Dundee 1998 NEJ NEJ NEJ NEJ NEJ Not as a customer, but perhaps as a networking tool. within a geographic area
15 BioDynamics Research Ltd biodynamics.co.uk Pharmaceuticals/CRO 1992 JA JA JA NEJ CRO, with internal pipeline. Competitor? Chemical synthesis, lead-opt (in vitro metabolism, pharmacokinteic evaluation, discovery bioanalysis, radioisotopes for quantitative whole body autoradiography), synthetic chemistry, metabolism.
16 BioScience York sciencecityyork.org.uk/bioscience/ Business development York 1995 NEJ NEJ NEJ NEJ NEJ Not as a customer, but perhaps as a networking tool. within a geographic area
17 Biotica Technology Ltd biotica.com Discovery Cambridge 1996 21-50 Privat JA NEJ JA JA NEJ Polyketides.
18 BTG btgplc.com Discovery, creating value London 45.7 2.4 1949 70 Börsnoterat NEJ NEJ NEJ NEJ NEJ Contacted PHK Different types of substances, some small molecular but other things too. Not sure how by buying IP. much in-house research they perform. They seem to buy IP at an early stage to create value and then sell it again. Expressed will to outsource to CROs.
19 Cancer Research Techology Ltd. cancertechnology.com Cancer pharmaceuticals London 2002 3000 Privat. Helägt av JA JA JA JA NEJ Closes gap between discovery and early clinical. Competitor? Biology, HTS, chemistry, Cancer Research UK preclinical. R&D budget over £200m.
20 Celgene Ltd celgene.com Cancer pharmaceuticals Uxbridge 458.4 35.18 1986 1600 Börsnoterat (storägare: JA JA JA JA JA Contacted PHK Different types of substances, small molecular and other. American firm, but has more Janus, Fidelity, AXA) than just marketing and sales in the UK, not sure exactly what though.
21 Cellzome (UK) Ltd cellzome.com Pharmaceuticals Cambridge 2000 80 Privat JA JA JA NEJ Small molecular pharmaceuticals. Does hit-to-lead, lead-opt and preclinical development. HTS?
22 Chroma Therapeutics Ltd chromatherapeutics.com Cancer pharmaceuticals Oxford 2001 Privat JA NEJ JA JA NEJ Contacted PHK CFO Richard Actively looking for new small molecular substances. Not sure exactly what research Bungay previously methods they use, but they refer to hit finding, lead-opt and preclinical. Raised £15m worked at financing (sum of two occasions) 2004, and another £30m 2006. AstraZeneca.
23 Cyclacel Pharmaceutical Inc cyclacel.com Cancer pharmaceuticals Dundee 0.2 -14.98 1996 58 Börsnoterat (storägare: JA JA JA JA JA Contacted both in PHK Headquartered in New Jersey, but research lab in Dundee. Several substances in the Federated Kaufmann Scotland and the US pipeline. Has internal research from hit to clinical phase II. Aquired approx £30m (over Fund, Deerfield three years) from Kingsbridge Capital in December 2007. Management)
24 Domainex domainex.ltd.uk Pharmaceuticals/CRO Cambridge 2001 20 JA JA NEJ NEJ CRO with internal research on nucleotide binding domains. Medicinal and computational chemistry, virtual screening. Earlier NCE Discovery. HTS? Design and synthesis of candidates to hit customer targets.
25 Ferring Research Ltd ferring.com Pharmaceuticals Chilworth 516 1950 2500 Privat. Helägt av Dr. JA JA JA JA JA Founded 1950 in Large pharmaceutical company with research center in the UK. Most work with peptide Frederik Poulsen Malmö by Frederik meds, but does comment on their expertise on small molecules. Does have an office in Foundation. Poulsen, who is still Denmark (sales & marketing). Too big? chairman. Uppsala University Strategic and operativeStrategic marketing plan for AB iNovacia in the UK, 2008 Appendix B 26 Genentech gene.com Pharmaceuticals 4734.84 1077.63 1976 10000+ Börsnoterat (storägare: JA JA JA JA JA Contacted, PHK Very large. FMR Corporation, contracted phase Marsico, AXA)
27 Gilead Ltd gilead.com Pharmaceuticals Cambridge 1543.26 -606.9 1987 2515 Börsnoterat (storägare: JA JA JA JA JA Large pharmaceutical company, all research focused on small molecule treatments of Martin Westberg FMR Corporation, virus disease (hiv, hepatitis) and heart/coronary disease. Haven't found satisfactory AXA, Barclay) information on whether they have any research in their UK, Cambridge center. Probably not. Not very much info about research overall.
28 Karus Therapeutics karustherapeutics.com HDI cancer Southampton 2005 12 Privat JA JA NEJ NEJ Cancer and inflammation treatments via histone deacetylase inhibitors (HDI). Received pharmaceuticals £750k start-up funds from IP2IPO and Sullis Seedcorn Fund in 2005. Received VC financing in 2007, not sure how much.
29 MediGene medigene.de Pharmaceuticals Oxford 23.1 -5.1 1994 170 Börsnoterat JA JA JA JA JA At least one small molecule product in the pipe. Cancer and other diseases. Offices in Germany, England and the US.
30 Pfizer pfizer.com Big pharma 24669.21 9861.87 1849 87000 Börsnoterat JA JA JA JA JA Contacted PHK Big pharma. Contacted in the US. Research in the UK?
31 Piramed Pharma piramed.com Discovery Berkshire 2003 21-50 Privat JA NEJ JA NEJ NEJ Has several small molecular leads, inhibitors agains PI3 kinase. Raised £8m 2003 from JP Morgan and Merlin.
32 Prosidion Ltd osip.com Cancer pharmaceuticals Oxford 191.5 -296.9 1983 500 Börsnoterat JA JA JA JA NEJ Contacted PHK Already contacted. Small molecular cancer therapies. Also does diabetes and obesity drugs.
33 ProStrakan Group plc prostrakan.com Pharmaceuticals Galashiels 38.46 -29.59 1995 212 Börsnoterat (storägare: JA JA JA JA JA Lost contact, but PHK Have previously been contacted but contact was lost. Has several substances in the Warburg Pincus, name and numbers pipeline. Haven't found satisfactory information about which parts of the value chain they Aventis) are available perform themselves, so did educated guessing.
34 Protherics plc protherics.co.uk Cancer pharmaceuticals London 31.12 -3.36 1999 290 Börsnoterat (storägare: JA JA JA JA JA Mostly antibody and protein treatments, but has one cancer therapy based on small Morley, Invesco, AXA) molecule in the pipe.
35 Sareum Ltd sareum.co.uk Cancer pharmaceuticals Cambridge 2.47 0.53 2003 21 Börsnoterat JA JA JA JA NEJ CRO dealing with protein structure, structure-based research, gene-to-structure, structure- to-lead, lead-to-candidate etc. But, has internal pipeline of small molecular cancer therapies. Currently two in lead-generation and three in lead-opt. IPO 2004 raised £2m. £712k 2006 and 2007 in two offerings. £1.25m signed deal in October 2007 (another offering).
36 Senexis senexis.com Pharmaceuticals Cambridge 2001 Privat NEJ NEJ NEJ Small molecule development, discovery and in-licensing. Mainly amyloid disease. Expressed will to cooperate with other companies. BTG and Wellcome Trust have invested over £3m since 2002, and recently (2008) Wellcome granted another £2.9m to
the company. Only perform in vitro-assays themselves, the rest is outsourced.
37 Sentinel Oncology Ltd sentineloncology.com Cancer pharmaceuticals Cambridge 2005 Privat NEJ NEJ NEJ NEJ NEJ Small molecule treatments against cancer, primarily solid tumors. No internal research,
outsources everything. £134k raised in 2005 and 2006. £450k from Cambridge Seed Fund 61(63) in February 2007, supplemented with £193k from East England Development in May 2007. £1.3m grant from Wellcome Trust in October 2007.
38 Shire plc shire.com Pharmaceuticals Hampshire 916.47 141.78 1986 2868 Börsnoterat JA JA JA JA PHK has been in contact with their R&D in Boston. Haven't been able to determine whether they have R&D in the UK. Small molecular? Products on the market seem to be small molecular. HTS screening?
39 Sosei Co. Ltd. sosei.com Pharmaceuticals Saffron Walden 3.47 -29.32 Ägs av Sosei Group NEJ JA JA JA Japanese firm, with expressed will to outsource to CROs. Sosei R&D Ltd is located in the Corp som är UK, working with evaluating new potential in old drugs or drug candidates with halted börsnoterat i Japan. development. Not sure whether they have their own biology-discovery. HTS?
40 Summit plc summitplc.com Pharmaceuticals Oxford 1.03 -3 2003 Börsnoterat JA JA JA JA Firm that does chemical genomics (what effect does a substance have on different pathways) on zebra fish, plus carbohydrate studies and manufacture. Has a few small molecular substances in the pipe (discovery up to clinical phase I). HTS?
41 Takeda Cambridge Ltd takedacam.com Pharmaceuticals Cambridge 6134.28 1578.28 1781 15000 Börsnoterat JA JA JA JA JA Largest pharma in Japan. Lots of stuff in the pipe, and research in the UK (originally Paradigm Therapeutics which they bought). Everything from development to clinical phase III. Mostly CNS-research in the UK. Big pharma.
42 TopoTarget UK Ltd topotarget.com Cancer pharmaceuticals Oxford 4.57 -17.47 2000 120 Börsnoterat JA JA JA JA Contacted, in PHK Originally Danish Cancer treatments, one on the market and several others in different phases. Raised Denmark firm. £49m in 2006 and 2007 in offerings. Contacted by PHK. HTS?
43 Trigen Ltd trigen.co.uk Pharmaceuticals London 2005 Privat JA JA JA NEJ In-house discovery and development of small molecule pharmaceuticals, as well as protein meds. Three substances in discovery phase. £19,6m fundraiser in 2005, but out of cash currently according to PHK. Not found any signs of new fundraisers since 2005. HTS?
44 UCB ucb-group.com Pharmaceuticals Cambridge 1867.02 271.58 1928 10000+ Börsnoterat JA JA JA JA JA BioMAP BioSeek, Contacted, in PHK Large amount of substances in the pipeline. Mostly focused on CNS, inflammation and bioseekinc.com Belgium oncology. R&D in England studies inflammation (in Cambridge) and oncology/immunology (in Slough). Large company. Contacted by PHK (in Belgium), but lacked room in the budget for 2007. Did however buy service from BioSeek (BioMAP) in December 2007, to supplement their target differentiation, lead development and drug candidate selection.
45 Vernalis plc vernalis.com Pharmaceuticals Cambridge 16.33 -42.43 1986 124 Börsnoterat JA JA JA JA CNS and cancer. Structure-based drug discovery. Pronounced will to cooperate. 2 products on the market, several in the pipe. R&D in Cambridge. £27.6m in 2005 to start up shop in the US. Has the whole chain, but do they really do HTS if they do structure-based discovery?
46 Vertex Pharmaceuticals (Europe) Ltd vpharm.com Pharmaceuticals Oxford 110.34 -105.51 1989 945 Börsnoterat (storägare: JA JA JA JA Contacted, in the US PHK Contacted in the US. Discovery, development and marketing of small molecular Wellington, Price, pharmaceuticals. Research in the UK? HTS? Not very much information on how they Fidelity) perform their research. Uppsala University Strategic and operativeStrategic marketing plan for AB iNovacia in the UK, 2008 Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix C
Appendix C
On the following page the sales promotion letter that was formulated is presented in its original form.
Uppsala University 62(63) Martin Westberg Strategic and operative marketing plan for iNovacia AB in the UK, 2008 Appendix C
Personalgreetingphrasegoeshere. iNovacia Highestqualitydrugdiscoveryservices Webringanofferofthehighestquality x Rapidandsoundcompoundanalysis drug discovery services at competitive andpurification prices with a proven track record, x Documentedmedicinalchemistry complete from assay development to experienceandexpertise chemical expansion. Services include x Higheststandardresearchinformatics high throughput screening of our high quality diverse compound library, a Our aim is to provide excellent library which has generated several integrated services in the area of drug lead optimization projects. We provide discovery.Throughsolidexperiencefrom youwitharesearchteaminchemistry, the pharmaceutical industry combined biology and biophysics that only the with automated stateǦofǦtheǦart big pharmaceutical companies can technological platforms, we provide a matchbutwiththebenefitsofasmall, costeffectivewaytoidentifycompounds innovative and dedicated research which are superior starting points for organisation. lead optimization and generate and transfer IP as well as knowǦhow to our Our services include but are not limited clients. With no internal pipeline of our to: own, there is no potential conflict of x Efficientassaydevelopment interest between us and our customers. x Highthroughputscreeningofour TheiNovaciastaffhasasolidexperience diversehighqualitycompoundlibrary of industrial drug discovery research orofclientlibrary from working both toward and within x Thoroughbiophysicalcharacterisation globalbigpharmaceuticalcompaniesand smaller ventures alike and a history of success.
Corporate factsheet: http://www.inovacia.se/factsheet Corporate webpage: http://www.inovacia.se For further information please contact: Peter Halkjaer-Knudsen SVP Alliances and Business Development +46-700-000000 [email protected]
Uppsala University 63(63) Martin Westberg